by pay@crispino.us | Mar 18, 2026 | Measurement & Valuation, Terminologies
States that assets should be recorded at their original purchase price, not market value. Provides objectivity and verifiability. Though simple, it may understate asset values in inflationary times.
by pay@crispino.us | Mar 12, 2026 | Assets, Chart of Accounts, Terminologies
Cash discounts taken for early payment of supplier invoices. Reduces the overall cost of purchases. An incentive to manage cash efficiently.
by pay@crispino.us | Mar 11, 2026 | Recording & Adjustments, Terminologies
End-of-period journal entries to update accounts for accruals, deferrals, or estimates. Examples include accrued wages or depreciation. They ensure revenues and expenses match the proper period.
by pay@crispino.us | Mar 9, 2026 | Chart of Accounts, Income, Terminologies
Income from selling goods or services. It is the primary revenue stream for most companies. Recorded net of returns and discounts.
by pay@crispino.us | Mar 9, 2026 | Chart of Accounts, Expenses, Terminologies
Shipping costs incurred to bring purchased goods into the business. Included in inventory cost until sold. Helps establish accurate cost of goods.
by pay@crispino.us | Mar 6, 2026 | Chart of Accounts, Liabilities, Terminologies
Money owed to suppliers for goods or services received but not yet paid. It is typically short-term and settled within the operating cycle. Proper management ensures supplier trust and cash flow balance.
by pay@crispino.us | Mar 5, 2026 | Chart of Accounts, Equity, Terminologies
Company’s own shares that were repurchased from shareholders. It reduces equity since these shares are no longer outstanding. Often used for stock compensation or market stabilization.
by pay@crispino.us | Mar 4, 2026 | Chart of Accounts, Expenses, Terminologies
A catch-all category for minor expenses that don’t fit elsewhere. Should be monitored to avoid misuse. Best practice is to keep this account minimal.
by pay@crispino.us | Mar 2, 2026 | Assets, Chart of Accounts, Terminologies
Non-physical assets like patents, trademarks, copyrights, and goodwill. They provide future economic benefits but lack physical substance. They are amortized rather than depreciated.
by pay@crispino.us | Feb 25, 2026 | Key Accounting Concepts, Terminologies
Revenues must be recorded when earned, not when cash is collected. Ensures consistency and comparability across businesses. A cornerstone of accrual accounting.
