Accounting Definitions
Prepaid Expense
What is a future Expense that has been paid in advance for something not used yet or expired
Accounts Payable
What is Credit Balance
Monetary Unit Principle
What is that all transactions recorded are in the USD
Accounts Receivable
Operating Activities
Food Inventory
Other Current Assets
Intangible Assets
a non-physical asset that provides a business with economic value, lacking physical substance but still contributing to its operations, reputation, and long-term viability, such as intellectual property or goodwill
Accumulated Depreciation
What is Credit Balance
Matching Principle
An Organization's use accounting's accrual basis and march business income to its expenses in a given period
Other Current Assets
Operating Activities
CIP
Long Term Assets
Current Liabilities
short-term financial obligations a business expects to pay within one year or its operating cycle
Rent Incentives
What is Debit Balance
Materiality Principle
Financials Reports show sums adjusted to the nearest dollar; as well as this refers to the error in accounting records when the sum is irrelevant
Long Term Debt
Financing Activities
Goodwill
Other Long Term Assets
AFDA
is a contra current asset account associated with Accounts Receivable
Inventory
What is Debit Balance
Historical Cost Principle
specifies the historical cost of a product; financial statements show the historical cost
Long Term Assets
Investing Activities
Accrued Interest
Current Liabilities
Depreciation
The systematic allocation of the cost of an asset from the balance sheet to Depreciation Expense on the income statement over the useful life of the asset. (The depreciation journal entry includes a debit to Depreciation Expense and a credit to Accumulated Depreciation, a contra asset account)
Amortization ( P&L Side)
Debit
Full Disclosure Principle
Financial Statements must have all the information that is important for a lender and investor
Depreciation & Amortization
Operating Activities
Capital Lease Obligation
Long Term Debt