by pay@crispino.us | Jun 10, 2026 | Chart of Accounts, Liabilities, Terminologies
Formal written promises to pay lenders, often with interest, within a set timeframe. They may be short-term or long-term depending on maturity. Notes provide structured financing.
by pay@crispino.us | Jun 8, 2026 | Chart of Accounts, Expenses, Terminologies
Covers consumables or materials used to deliver services (e.g., cleaning supplies for janitorial work, parts for repair services). Unlike merchandise, they are not resold. Recorded as a direct cost of service delivery.
by pay@crispino.us | Jun 7, 2026 | Chart of Accounts, Expenses, Terminologies
Direct costs of producing goods sold, including materials and labor. It directly impacts gross profit. Accurate calculation is essential for pricing and profitability analysis.
by pay@crispino.us | Jun 5, 2026 | Chart of Accounts, Expenses, Terminologies
Compensation paid to employees for their services. Usually the largest operating expense for many businesses. Includes base pay but excludes benefits.
by pay@crispino.us | Jun 5, 2026 | Measurement & Valuation, Terminologies
Occurs when an asset’s market value drops below its book value. Impairment losses are recognized to reflect reduced economic benefit. Common for goodwill or investments.
by pay@crispino.us | Jun 3, 2026 | Assets, Chart of Accounts, Terminologies
A contra-asset account that records the total depreciation expense charged against fixed assets. It reduces the book value of assets over time. This reflects wear, tear, or obsolescence.
