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Unreceived payments or losses
- A write-off is a business accounting expense that accounts for unreceived payments or losses. A write-off reduces taxable income on a company's income statement.
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The term write-off or expense-off refers to the “elimination of an asset from the financial books” when it is no longer valuable to the business.
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What Is a Write-Off? A write-off is a financial transaction that involves removing a specific asset or debt from a company’s books, acknowledging that it’s unlikely to be recovered or paid. In essence, it’s an accounting measure that recognizes a loss or expense, reducing the reported value of an asset or the recorded revenue.
Definition: A write off is the process of removing an asset or liability from the accounting records and financial statements of a company. Companies tend to write off assets because the assets are no longer available or valid.
A write-off is the act of reducing the recorded value of an asset on a company's balance sheet. It is typically done when an asset has become worthless, uncollectible, or of minimal value, and the company needs to remove it from their accounting records.
Jul 24, 2024 · What Is a Write-Off? A write-off is a business accounting expense that accounts for unreceived payments or losses. A write-off reduces taxable income on a...
- Will Kenton
- 1 min
In accounting, write-offs refer to the reduction or elimination of the value of an asset or receivable. Whether due to depreciation, obsolescence, or uncollectible, a write-off decreases or removes the recorded value of the concerned asset on a company's balance sheet.
Aug 19, 2024 · What is a Write Off? A write off is a reduction in the recorded amount of an asset. This reduction is achieved by charging the amount of the write off to expense, which reduces your income. You would write off an asset under the following circumstances: It can no longer be converted into cash. It can provide no further use to a business