by pay@crispino.us | Aug 18, 2026 | Recording & Adjustments, Terminologies
Journal entries made at the end of an accounting period to reset temporary accounts (revenues, expenses, drawings) to zero. Their balances transfer to permanent accounts like capital or retained earnings. This prepares books for the next cycle.
by pay@crispino.us | Jul 15, 2026 | Recording & Adjustments, Terminologies
The basic record of a financial transaction showing which accounts are debited and credited. Every transaction begins with a journal entry. Proper documentation ensures accuracy in ledgers.
by pay@crispino.us | May 10, 2026 | Recording & Adjustments, Terminologies
Costs paid in advance that will benefit future periods, such as prepaid insurance or rent. Initially recorded as assets, then expensed gradually. Matches costs with related revenues.
by pay@crispino.us | Mar 25, 2026 | Recording & Adjustments, Terminologies
Money received before services are performed or goods are delivered. Treated as a liability until obligations are fulfilled. Common with subscriptions and advance bookings.
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 | Nov 25, 2025 | Recording & Adjustments, Terminologies
A collection of all accounts that summarizes transactions from journals. It is often referred to as the “book of final entry.” The general ledger provides the basis for financial statements.
