Early Payment Discount
An early payment discount is a reduction offered to customers who settle invoices before the due date. Commonly expressed as terms like 2/10, net 30, it encourages faster collections and improves cash flow. From the seller’s perspective, it reduces revenue slightly but lowers credit risk and collection effort.
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Equitable Charge
An equitable charge is a claim on an asset that does not transfer ownership but grants the lender rights over…
Extended Trial Balance
An extended trial balance is a worksheet that expands the standard trial balance to include adjustment, income statement, and balance…
Expense Allocation
Expense allocation is the process of distributing shared or indirect costs across departments, projects, or cost centres. It ensures expenses…
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