Prepaid 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. As the service is rendered, it’s gradually recognized as revenue. Examples include subscription fees, advance rent, or annual maintenance contracts.
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Par Value
Par value is the nominal or face value assigned to a company’s shares when issued. It has little relation to…
Purchase Returns
Purchase returns arise when a company sends defective or unsatisfactory goods back to a supplier after purchase. These transactions reduce…
Public Offering
A public offering occurs when a company issues shares or securities to the general public to raise capital. The most…
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