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 the loan period. This ensures interest is recognised gradually, matching the periods benefited and maintaining accuracy in both the income statement and balance sheet.
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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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