by pay@crispino.us | Feb 5, 2026 | Chart of Accounts, Expenses, Terminologies
Payments to outside contractors or freelancers who provide part of a contracted service. Common in construction, design, and professional services. Considered a direct operating expense.
by pay@crispino.us | Feb 3, 2026 | Financial Statements, Terminologies
A profitability ratio that shows how effectively assets generate net income. Calculated as Net Income ÷ Total Assets. Indicates efficiency in using resources.
by pay@crispino.us | Feb 3, 2026 | Assets, Chart of Accounts, Terminologies
A temporary account used to track goods bought for resale. At the end of the period, it adjusts into inventory and COGS. Helps monitor supplier activity and inventory turnover.
by pay@crispino.us | Feb 3, 2026 | Chart of Accounts, Liabilities, Terminologies
Any borrowing with repayment terms beyond one year. This may include bank loans, bonds, or lease obligations. Provides major financing but increases leverage.
by pay@crispino.us | Feb 2, 2026 | Assets, Chart of Accounts, Terminologies
The cost of obtaining the right to operate under a franchise brand. Provides access to trademarks, business models, and marketing support. Amortized over the agreement term.
by pay@crispino.us | Jan 31, 2026 | Internal Controls & Compliance, Terminologies
An internal control principle where responsibilities are divided so no single individual controls all aspects of a financial transaction. Reduces fraud risk. Commonly applied in cash handling and approval processes.
by pay@crispino.us | Jan 29, 2026 | Internal Controls & Compliance, Terminologies
A model explaining factors that lead to fraud: pressure, opportunity, and rationalization. Widely used in auditing and forensic accounting. Helps organizations design better controls.
by pay@crispino.us | Jan 22, 2026 | Assets, Chart of Accounts, Terminologies
Written promises from customers or others to pay a definite amount at a specific future date. Notes may earn interest, making them slightly different from accounts receivable. They are enforceable legal agreements.
by pay@crispino.us | Jan 21, 2026 | Chart of Accounts, Equity, Terminologies
Represents amounts investors pay above par value when purchasing stock. It reflects extra equity contributions. Often arises in public offerings.
by pay@crispino.us | Jan 20, 2026 | Assets, Chart of Accounts, Terminologies
Money owed to the company by customers for goods or services delivered on credit. It reflects short-term claims expected to be collected within the business cycle. Managing A/R ensures strong cash flow.
