Physical 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 errors, and ensures inventory valuation accuracy. Even businesses using perpetual systems perform physical counts periodically to detect theft, damage, or misstatements.
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Prepaid Interest
Prepaid interest is interest paid before it's due, often at the beginning of a loan term. It's initially recorded as…
Prepaid Income
Also known as unearned income, prepaid income is money received before delivering goods or services. It’s recorded as a liability…
Prepaid Expense
Prepaid expenses are advance payments for goods or services to be received in future periods. Common examples include prepaid rent…
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