Cash Accounting
An accounting method that records income when cash is received and expenses when cash is paid. It’s simpler than accrual accounting and works well for small businesses with straightforward transactions. However, it may not reflect a company’s full financial picture at any given time.
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Capital Lease
A long-term lease that essentially functions as a purchase. The lessee assumes ownership-like risks and benefits, and the asset is…
Cash Equivalent
Short-term, highly liquid investments that can be quickly converted into a known amount of cash typically within three months. Examples…
Contingent Liability
Contingent liability is a potential obligation that may arise depending on the outcome of a future event, like a lawsuit…
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