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 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 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 | Assets, Chart of Accounts, Terminologies
Money owed to the company by customers for goods or services delivered on credit. It reflects short-term claims expected to be collected within the business cycle. Managing A/R ensures strong cash flow.
