by pay@crispino.us | Mar 4, 2026 | Chart of Accounts, Expenses, Terminologies
Represents taxes on net income owed to the government. Calculated based on taxable income, not accounting profit. A standard line item on income statements.
by pay@crispino.us | Feb 26, 2026 | Assets, Chart of Accounts, Terminologies
Cash or personal resources transferred by the owner to fund business operations. Recorded as a business asset but increases Owner’s Capital simultaneously. Important to separate from personal accounts for legal and tax purposes.
by pay@crispino.us | Feb 26, 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 | Feb 25, 2026 | Cost & Managerial Accounting, Terminologies
Indirect costs that cannot be directly traced to products or services, such as utilities or administrative salaries. Overhead is allocated to ensure accurate costing. Helps in determining product profitability.
by pay@crispino.us | Feb 24, 2026 | Cost & Managerial Accounting, Terminologies
Expenses that change in direct proportion to sales or production, such as raw materials or commissions. Key for understanding contribution margins. Helps in pricing decisions.
