Terms starting with
Lump-Sum Purchase
A single payment made to buy multiple assets in one transaction, such as buying land and a building together. The total cost must be allocated…
READ MORELong-Term Debt
Financial obligations due more than one year from the reporting date. It includes bonds, bank loans, or lease obligations. Long-term debt appears on the balance…
READ MORELiquidation
The process of closing a business and distributing its assets to creditors and owners. Assets are sold to pay off liabilities. Any remaining funds go…
READ MORELiquid Assets
Assets that can be quickly converted into cash without losing value. Examples include cash on hand, bank balances, and short-term investments. These are critical for…
READ MORELimited Partnership
A business structure with at least one general partner who manages the business and assumes full liability, and one or more limited partners who invest…
READ MORELIFO
An inventory valuation method where the most recently purchased items are recorded as sold first. During inflation, LIFO typically results in higher cost of goods…
READ MORELetter of Credit
Letter of credit is a financial document issued by a bank guaranteeing payment to a seller, provided certain conditions are met. Common in international trade,…
READ MORELodgements
Lodgements is a deposit made into a bank account, typically in the form of cash, checks, or electronic transfers. In bookkeeping, lodgements are recorded as…
READ MORELimited liability
A legal structure where business owners or shareholders are only responsible for company debts up to the amount they invested. Their personal assets are protected.…
READ MORELiability
Liability is an obligation a business owes to outsiders, such as debts, loans, or unpaid expenses. Liabilities can be current (due within a year) or…
READ MORE
This website uses cookies to improve your experience. You can accept all or reject non-essential cookies.