O'Reilly logo

Accounting All-in-One For Dummies by Jill Gilbert Welytok, Tage C. Tracy, John A. Tracy, Vijay S. Sampath, Maire Loughran, Frimette Kass-shraibman, Mark P. Holtzman, Lita Epstein, Ken Boyd

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 1

Identifying Costs and Matching Costs with Revenue

In This Chapter

arrow Knowing the ins and outs of costs and expenses

arrow Understanding the difference between product and period costs

arrow Figuring out which costs to depreciate

arrow Mulling over revenue recognition

This chapter is your introduction to a company's tangible assets, which you can touch and feel — they have a physical presence. Tangible assets, also called fixed assets, include property, plant, and equipment (PP&E). Many fixed assets are used for years, and a company relies on a mysterious accounting tool called depreciation to keep its financial statements in line with the reality of how long those assets stay in use.

If you read this entire chapter, depreciation won't seem so mysterious anymore. This chapter helps you understand what depreciation is and how it connects a business's costs to its expenses. (Yes, costs and expenses are two different things in the business world.) This chapter also walks you through the information you find in a schedule of depreciation.

Because you match expenses with revenue, this chapter wraps ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required