Accruals Concept: The concept that profit is the difference between revenue and the expenses; incurred in generating that revenue, either these expenses paid are to be paid yet.
Accrued Expenses: An expense for which the benefit has been received but it has not been paid by the end of the period. It is included in the balance sheet under current liabilities as “accruals”.
Accrued Income: Income from a source other than the main source of business income, such as rent receivable on and unused office in the company headquarters, that was due to be received by the end of the period but has not been received by that date. It is added to debtors in the balance sheet.
Accumulated Depreciation Account: The account therein depreciation is accumulated for balance sheet purposes. It is used in order to leave the cost figure as the balance in the fixed asset account.
Accumulated Funds: A form of capital account for a Non-Profit Organization.
Acid Test Ration: A ratio comparing current assets less stock with current liabilities is called acid test ratio.
Amortization: Amortization and depreciation are used interchanging.
Assets: Resources owned by a business.
AVCO: A method by which the goods are priced out at average cost.
Bad Debt: A debt that will not be collected.
Balance Brought Down: Balance of an account; either debit or credit, which will be carried forward in next period.
Balance Carried Down:
Balance of the Account: Difference between the two sides of an account, either debit or credit, which will be taken in next period as an opening balance.
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