The concept is most commonly used in governmental accounting, where encumbrances are used to ensure that there will be sufficient cash available to pay for specific obligations. By using encumbrances, a government entity can be [...]

If the partnership cannot show this, it is presumed that the partner was able to deduct the distributive share of the partnership’s costs in full. If you retire and remove a depreciable asset in connection [...]

Think about large recurring business costs that businesses pay each month, like inventory replenishment or service subscriptions. These are usually paid electronically via automated clearing house (ACH) payments or wire transfer. Paying these costs with [...]