by pay@crispino.us | Feb 14, 2026 | Key Accounting Concepts, Terminologies
Requires expenses to be recorded in the same period as the revenues they help generate. This prevents mismatched reporting of costs and income. Essential for accurate net income measurement.
by pay@crispino.us | Feb 13, 2026 | Chart of Accounts, Expenses, Terminologies
Covers software subscriptions, licenses, and IT support services. Increasingly significant due to digital transformation. Treated as recurring operating costs.
by pay@crispino.us | Feb 12, 2026 | Chart of Accounts, Equity, Terminologies
Represents ownership interest in a corporation. Issued shares grant voting rights and residual claim on profits. Equity increases when stock is sold to investors.
by pay@crispino.us | Feb 11, 2026 | Accounting Proram, Terminologies
Technology that scans and extracts data from receipts, invoices, or documents into the system automatically. Reduces manual entry. Enhances efficiency in expense management.
by pay@crispino.us | Feb 10, 2026 | Other Key Terms, Terminologies
Supporting documents accountants prepare during audits or reporting. They include schedules, reconciliations, and analysis used to verify accounts. Provide evidence and reference for conclusions.
by pay@crispino.us | Feb 9, 2026 | Chart of Accounts, Liabilities, Terminologies
Declared dividends owed to shareholders but not yet distributed. Once declared, they are an obligation until paid. They reduce retained earnings.
by pay@crispino.us | Feb 8, 2026 | Chart of Accounts, Expenses, Terminologies
Costs of transporting goods to customers or between facilities. Essential in supply chain-heavy industries. May be charged to customers or absorbed by the company.
by pay@crispino.us | Feb 6, 2026 | Internal Controls & Compliance, Terminologies
A U.S. law passed in 2002 to enhance corporate governance and financial transparency. Requires stricter internal controls and auditor independence. Applies mainly to publicly traded companies.
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.
