The sunk cost fallacy incorporates investor emotions that cause otherwise irrational decision-making. Sunk costs also cover certain expenses that are committed but yet to paid. Imagine a company that has entered into a

In most cases, liability and revenue accounts increase with a credit entry. Accounting and bookkeeping software requires each journal entry https://www.bookstime.com/ to post an equal dollar amount of debits and credits. To understand

Another argument favoring classifying bad debt as a non-operating expense is that bad debt comes from lending money to their customers, and they are unlikely to get it back. However, it also reduces

At this stage, the bond issuer would pay the maturity value of the bond to the owner of the bond, whether that is the original owner or a secondary investor. For risk-adverse investors,