Another description of a contra expense account is an account that reduces or offsets the amounts reported in another general ledger expense account(s). Contra expense accounts are rarely used, because organizations find it to be easier to record third-party payments directly against an expense account. However, these accounts are still useful when dealing with large […]

For issuers, bonds can be a way to provide operating cash flow, fund capital investments, and finance debt. In its simplest form, discount amortization is a process used to allocate the discount on bonds, or other long-term debt, evenly over the life of the instrument. In this table, the effective periodic bond interest expense is […]