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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Purchase Order
A purchase order is a formal document issued by a buyer to a supplier, confirming the purchase of goods or…
Petty Cash
Petty cash is a small fund kept on hand for minor or incidental expenses, such as office supplies or travel…
Provision
A provision is an estimated liability recorded when a business expects a future obligation from a past event but the…
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