The Financial Fix of the Week
Get your weekly finance fix. Read these clear definitions of key financial terms and learn why they are important.
One of the key GAAP principles is the use of historical value for assets on the balance sheet. Read More
Economic depreciation implies that an asset loses its value over time. But accounting depreciation has more to do with cost allocation than with loss of value. Read More
The matching principle is a fundamental accounting rule for preparing an income statement. It simply states, “Match the sale with its associated costs to determine profits in a given period of time—usually a month, quarter, or year.” Read More
Non-GAAP financials are often created for internal management purposes and can be publicly disclosed as supplements to GAAP financial reports when management believes that non-GAAP financials provide a better picture of the health of the “core” of the company. Read More
GAAP stands for Generally Accepted Accounting Principles. The U.S. Securities and Exchange Commission (SEC) requires that GAAP be followed by all companies whose stock is publicly traded on the open market. Read More
