Terms starting with
Prepaid Interest
Prepaid interest is interest paid before it's due, often at the beginning of a loan term. It's initially recorded as an asset and expensed over…
READ MOREPrepaid Income
Also known as unearned income, prepaid income is money received before delivering goods or services. It’s recorded as a liability because the company owes performance.…
READ MOREPrepaid Expense
Prepaid expenses are advance payments for goods or services to be received in future periods. Common examples include prepaid rent and insurance. Initially recorded as…
READ MOREPost Closing Balance Sheet
A post-closing balance sheet reflects the company’s financial position after all temporary accounts (revenues, expenses, dividends) are closed. It shows only permanent accounts, assets, liabilities,…
READ MOREPhysical Inventory
Physical inventory refers to the actual counting of goods in stock at a specific time, typically at period-end. It verifies book records, identifies shrinkage or…
READ MOREPerpetual Inventory
Perpetual inventory systems continuously track inventory levels using real-time data from point-of-sale or stock movement. It provides accurate, up-to-date stock figures without needing frequent physical…
READ MOREPartnership
A partnership is a business structure where two or more individuals share ownership, responsibilities, profits, and liabilities. Each partner contributes capital, labour, or skill, and…
READ MOREPurchases journal
The purchases journal is a specialised accounting book used to record all credit purchases of goods intended for resale. It excludes cash purchases and asset…
READ MOREProduction budget
A production budget estimates the number of units a company must produce to meet sales demands and maintain inventory levels. It considers sales forecasts, beginning…
READ MOREPayroll
Payroll refers to the total amount a company pays its employees, including wages, bonuses, taxes, and benefits. Payroll accounting involves calculating gross pay, withholding taxes,…
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