Terms starting with
Deficiency Account
An account used to record the shortfall when liabilities exceed assets, especially in insolvency or liquidation scenarios. It reflects the gap between what’s owed and…
READ MOREDeferred Payment Sale
A sales agreement where the buyer receives goods now but pays in future installments. The revenue is often recognized at the point of sale, while…
READ MOREDeferred Liability
Deferred liability is a financial obligation not due until a future date beyond the current accounting period. Examples include pension obligations, long-term leases, or deferred…
READ MOREDeferred Income Tax
A tax liability or asset that arises due to differences between accounting income and taxable income. These timing differences create temporary gaps, such as depreciation…
READ MOREDeferred Income
It is also known as unearned revenue, it refers to money received for goods or services not yet delivered. It’s recorded as a liability until…
READ MOREDeferred Expense
A cost that’s paid in advance but recognized as an expense over time, such as prepaid insurance or rent. It’s initially recorded as an asset…
READ MOREDeduction
Deduction is an amount subtracted from gross income or taxable income to reduce the tax owed. In payroll, deductions can also refer to amounts withheld…
READ MOREDouble-Entry Accounting
A bookkeeping system where every transaction affects at least two accounts, keeping the accounting equation (Assets = Liabilities + Equity) balanced. One account is debited,…
READ MOREDepreciation
Depreciation is the gradual reduction in value of a fixed asset over time due to wear and tear or obsolescence. It's recorded as an expense…
READ MOREDebit
Debit is an entry that increases assets or expenses and decreases liabilities or equity in double-entry accounting. Every debit has a corresponding credit. For example,…
READ MORE
This website uses cookies to improve your experience. You can accept all or reject non-essential cookies.