Terms starting with
Purchase Order
A purchase order is a formal document issued by a buyer to a supplier, confirming the purchase of goods or services. It includes details like…
READ MOREPetty Cash
Petty cash is a small fund kept on hand for minor or incidental expenses, such as office supplies or travel reimbursements. It's managed using a…
READ MOREProvision
A provision is an estimated liability recorded when a business expects a future obligation from a past event but the exact amount or timing is…
READ MOREProfit and Loss Statement
The P&L statement, or income statement, summarizes a company’s revenues, costs, and expenses over a period to show net profit or loss. It’s one of…
READ MOREProcessing Cost
Processing cost is the total cost associated with converting raw materials into finished goods in a manufacturing process. It includes direct labour, manufacturing overhead, and…
READ MOREPrice Margin
Price margin refers to the difference between the selling price of a product and its cost, usually expressed as a percentage. It reflects profitability per…
READ MOREPrepaid 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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