What is a Note Payable? Definition, Nature, Example, and Journal Entries
The sum of interest and principal which is the total payment is equal from year 1 to year 6. As you can see from the table above, the annual principal payment is equal to $5,000 while the interest keeps reducing in proportion to the reduction of principal. Here are some examples with journal entries involving […]
NRV: What Net Realizable Value Is and a Formula To Calculate It
This means that the accountant should use the accounting method that does not overstate the value of assets. Internally, calculate NRV to gauge asset values accurately, aiding in strategic decision-making and internal financial assessments. It helps in evaluating operational risks and the potential profitability of products. Computing for the Net Realizable Value is important for […]