by pay@crispino.us | Sep 24, 2026 | Assets, Chart of Accounts, Terminologies
A temporary account used to track goods bought for resale. At the end of the period, it adjusts into inventory and COGS. Helps monitor supplier activity and inventory turnover.
by pay@crispino.us | Sep 23, 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 | Sep 23, 2026 | Chart of Accounts, Equity, Terminologies
Cumulative net income not distributed as dividends but reinvested in the business. It grows with profits and shrinks with losses or dividend payments. Critical for long-term financing.
by pay@crispino.us | Sep 22, 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 | Sep 20, 2026 | Chart of Accounts, Liabilities, Terminologies
Debt securities issued by a company to raise capital. They usually have fixed interest rates and maturity dates. Often used for large-scale financing.
by pay@crispino.us | Sep 18, 2026 | Measurement & Valuation, Terminologies
States that assets should be recorded at their original purchase price, not market value. Provides objectivity and verifiability. Though simple, it may understate asset values in inflationary times.
