by pay@crispino.us | Apr 9, 2026 | Chart of Accounts, Expenses, Terminologies
Estimation of receivables that are unlikely to be collected. Recorded to align with the matching principle. Prevents overstated income.
by pay@crispino.us | Mar 31, 2026 | Chart of Accounts, Equity, Terminologies
Used in partnerships to track each partner’s contributions, share of profits, and withdrawals. Ensures fairness and clarity in multi-owner entities. Balances fluctuate as activities occur.
by pay@crispino.us | Mar 30, 2026 | Recording & Adjustments, Terminologies
Revenue earned but not yet billed or collected. For example, consulting services provided in December but invoiced in January. Recognized under accrual accounting.
by pay@crispino.us | Mar 30, 2026 | Accounting Proram, Terminologies
Compares actual financial performance against budgeted or forecasted amounts. Highlights over- and under-performance areas. A standard tool for management review.
by pay@crispino.us | Mar 29, 2026 | Chart of Accounts, Income, Terminologies
Profit realized when selling fixed assets at a price higher than book value. It is recorded as income separate from regular sales. Helps reflect capital gains in operations.
by pay@crispino.us | Mar 27, 2026 | Recording & Adjustments, Terminologies
A list of all ledger accounts and their balances at a given time. It ensures total debits equal total credits. Used as a preliminary check before preparing financial statements.
by pay@crispino.us | Mar 25, 2026 | Accounting Proram, Terminologies
Transactions are recorded instantly into the general ledger without waiting for batch updates. Provides up-to-date financial data. Supports faster decision-making.
by pay@crispino.us | Mar 23, 2026 | Assets, Chart of Accounts, Terminologies
A catch-all category for assets that do not fit neatly into other classifications, such as deposits or long-term advances. Often less liquid or unusual in nature. Used sparingly to avoid clutter.
by pay@crispino.us | Mar 22, 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 | Mar 21, 2026 | Measurement & Valuation, Terminologies
The systematic allocation of the cost of tangible assets (e.g., buildings, equipment) over their useful lives. It reflects wear and obsolescence. Depreciation is an expense but does not involve cash outflow.
