Closing Entries
Journal entries made at the end of an accounting period to reset temporary accounts like revenue and expenses to zero. These balances are transferred to retained earnings or capital accounts. Closing entries prepare the books for the next period and ensure accurate financial reporting.
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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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