The total amount spent by a business to acquire assets, goods, or services. It includes both capital expenditures (long-term investments) and operating expenses (day-to-day costs). Unlike expenses, which are recognized on the income statement, expenditures may appear as assets if they benefit future periods.
Encashment involves converting negotiable instruments like cheques, bills, or bonds into cash. In accounting, it represents the realisation of funds…
Estimated useful life refers to the anticipated period an asset will remain productive and contribute to revenue generation before becoming…
Errors and omissions refer to unintentional mistakes or oversights in accounting records, such as misclassifications, arithmetic errors, or missing transactions.…
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