by pay@crispino.us | Nov 2, 2025 | 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 | Nov 2, 2025 | Chart of Accounts, Liabilities, Terminologies
Long-term liabilities for leased property or equipment under accounting rules. Depending on terms, leases can be operating or finance leases. Recognized on the balance sheet to show commitments.
by pay@crispino.us | Nov 2, 2025 | Cost & Managerial Accounting, Terminologies
The sales level at which total revenues equal total costs, resulting in no profit or loss. A key tool in business planning. Helps determine minimum sales targets.
by pay@crispino.us | Nov 1, 2025 | Chart of Accounts, Equity, Terminologies
Sometimes used to track running balances of contributions, withdrawals, and allocations for ease of monitoring. It provides a clear view of how much the owner has taken out or put in during a period. At year-end, balances typically roll into the capital account.
by pay@crispino.us | Nov 1, 2025 | Financial Analysis, Terminologies
The ability of a company to meet short-term obligations. Measured using ratios such as current ratio and quick ratio. High liquidity means stronger financial flexibility.
