Ay: Ağustos 2021

For auditors, the focus is on verifying the accuracy of contra asset accounts. They scrutinize the assumptions and calculations behind depreciation and allowance for doubtful accounts to ensure they’re reasonable and compliant with accounting principles. From a financial analyst’s point of view, contra asset accounts provide insights into a company’s…

Billing a fixed-price contract often happens on a percentage-of-completion basis with retainage withheld. Once a contractor does have a right to it, after satisfactory contract completion, the contractor issues an invoice for it and moves it from the asset account to the A/R account for collection. The idea of retention is…