by pay@crispino.us | Jun 27, 2026 | Chart of Accounts, Income, Terminologies
Income earned from providing professional advice or specialized services. Recognized when the service is rendered. Common for service-based businesses like law, IT, and accounting. by pay@crispino.us | Jun 27, 2026 | Key Accounting Concepts, Terminologies
Assumes that a business will continue operating into the foreseeable future. This justifies reporting assets at historical cost rather than liquidation value. If the going concern is doubtful, disclosures are required. by pay@crispino.us | Jun 25, 2026 | Terminologies
The ability to meet long-term obligations. Solvency is assessed by debt-to-equity and interest coverage ratios. A solvent company is more stable and less risky to creditors. by pay@crispino.us | Jun 22, 2026 | Cost & Managerial Accounting, Terminologies
Expenses that remain constant regardless of production volume, such as rent or salaries. They do not vary with activity levels. Important for break-even analysis. by pay@crispino.us | Jun 22, 2026 | Cost & Managerial Accounting, Terminologies
A system that assigns expected costs to production for budgeting and performance evaluation. Differences between standard and actual costs create variances. Useful for control and planning.