Accrued expenses
Expenses incurred but not yet paid.
OpenFinancial Dictionary
Accounting & Finance Terms (English)
Accounting and Finance Terms Explained
Explore accounting, finance, auditing, taxation, and economics terms explained in clear English. Each entry provides a definition, a detailed explanation, practical uses, and examples where available.
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Accrued Expenses
Accrued expenses are costs that have been incurred but not yet paid. They ensure expenses are matched with the correct period.
OpenAccrued Expenses
Unpaid expenses that have already been incurred, see Accrued Expense
Openaccrued expenses payable
Accrued expenses payable is a liability for expenses incurred but not yet paid or processed through routine transactions. Examples include accrued salaries, utilities, or professional fees.
OpenAccrued Income
Accrued income is income earned during a financial period but not received by the end of the period. Accrued income usually does not appear in accounting items because it is classified as accounts rec...
OpenACCRUED INTEREST
is interest earned but not paid since the last due date.
OpenAccrued Inventory
It is an obligation that arises when the actual inventory of the goods is taken and goods are found received from the supplier and the invoice has not yet been sent
OpenAccrued Liabilities
Accrued liabilities are obligations for costs incurred but not yet paid or invoiced at period end (e.g., salaries, interest), ensuring expenses and liabilities are not understated.
OpenAccrued Liability
The amount a company owes for expenses or losses incurred that have not yet been paid nor recorded through a routine transaction.
OpenAccrued Payroll
Accrued payroll is salaries and wages earned by employees but not yet paid at period end. It is recognized as an expense with a corresponding liability until paid.
OpenAccrued revenue
Revenue earned but not yet billed or collected.
OpenAccrued Revenue
Accrued revenue is revenue already earned by delivering goods/services, but not yet invoiced or collected; it is recognized to reflect the right to receive consideration.
OpenAccrued Revenues
Revenues that have been earned and recorded, but are not as yet collected or Revenue that has been earned but not yet invoiced to the customer also known Accrued Income.
Openaccumulated profit
Accumulated profit (retained earnings) represents profits earned over time that were not distributed to owners/shareholders. It is part of equity and increases with net income and decreases with divid...
OpenAccumulation Plan
An accumulation plan is an investment approach where an investor buys shares periodically (small or large amounts). Returns may be reinvested to purchase additional shares, supporting long-term growth...
OpenACH
ACH (Automated Clearing House) is an electronic network used in the U.S. for bank-to-bank transfers such as payroll direct deposits and bill payments.
OpenAcquisition
An acquisition occurs when one company obtains control over another, typically by purchasing a controlling stake or assets. Accounting treatment may involve purchase price allocation and goodwill.
OpenAcquistition Cost
Acquisition cost is the total cost to acquire an asset, including purchase price net of discounts plus directly attributable costs such as transportation, installation, and legal fees.
Openactivity
An event that gives rise to the consumption of resources
OpenActivity Based Costing- ABC
Alternative costing method for strategic management; divides production into activities, defines costs for activities, and allocates costs to objects based on activity consumption
OpenACTIVITY BASED MANAGEMENT (ABM)
converts Activity Based Costing (ABC) into a system to manage an organization. Activity Based Management not only focuses on product, service, customer, channel costing, it also emphasizes: cost drive...
OpenActivity Ratios
activity ratios is ratio that measures resources of entity to generate maximum possible revenue.
OpenActual Cost
Actual cost is the amount actually paid to acquire an asset or incur a cost, excluding hypothetical values such as market price or insured value. It is often the basis for initial recognition in accou...
OpenAdditional Paid in Capital
Additional paid-in capital represents amounts received from shareholders in excess of par/stated value of shares. It is recorded in equity and reflects paid-in contributions beyond share capital.
OpenAdjusting Journal Entries
Adjusting journal entries are made at period end to correct omissions/errors and to recognize accruals, deferrals, depreciation, and other adjustments so that revenues and expenses are reported in the...
OpenAdverse opinion
An adverse opinion is issued when misstatements are both material and pervasive, rendering the financial statements misleading.
OpenAging
To learn more, see Aging in accounting see the aging of accounts, the aging of accounts receivable, or the aging of accounts payable
OpenAging Accounts Receivables
Classify the accounts receivable of the company according to the age of the accounts receivable. It is usually classified for 1 to 30 days, 31 to 60 days, 61 to 90 days, and more than 90 days
OpenAging of Accounts Payable
Classification of accounts payable according to the accrual time periods, usually they are classified according to due within 30 days, and due between 30 to 60 days and due between 60 to 90 days and m...
OpenAI Auditing
AI Auditing refers to using artificial intelligence and machine learning to support audit planning and procedures, such as anomaly detection, full-population testing, risk scoring, and continuous moni...
OpenAllowance for Doubtful Debts
Allowance for doubtful debts is an estimate that reduces receivables to their expected collectible amount, based on credit risk, aging analysis, and customer circumstances.
OpenALTMAN Z-SCORE
Altman Z-Score is a financial distress model that uses a set of ratios to estimate the likelihood of bankruptcy. It is used as an early warning indicator, and should be interpreted in the context of i...
OpenAmortisation
The systematic allocation of the cost of an intangible asset over its useful life.
OpenAmortization
It spreads the cost of intangible assets such as software or patents over the periods benefiting from them.
Openan Audit
An audit is an independent examination of financial statements and underlying records to provide reasonable assurance they are free from material misstatement and prepared in accordance with a reporti...
OpenAnalytical procedures
Analytical procedures involve evaluating financial data by analyzing relationships among both financial and non-financial information.
OpenAnnual Report
Report to the stockholders of a company which includes the company's annual, audited balance sheet and related statements of earnings, stockholders' or owners' equity and cash flows, as well as other ...
OpenAP
AP is a common abbreviation for Accounts Payable, representing trade payables owed to suppliers.
OpenAPB
APB was the Accounting Principles Board in the U.S. that issued guidance before it was replaced by FASB. The term may also refer to APB opinions within U.S. GAAP history.
OpenAPB 18
is the Accounting Principles Board Equity Method of Accounting for Investments in Common Stock.
OpenAR
AR is a common abbreviation for Accounts Receivable, representing amounts owed by customers for credit sales.
OpenArm’s length principle
Transactions between related parties must be priced as if they were independent.
OpenAsset
An asset is, in simple terms, anything the company owns that has value. More professionally, an asset is an economic resource owned or controlled by the entity as a result of past events and is expect...
OpenAsset
An asset is any economic resource owned or controlled by a business as a result of past events and expected to generate future benefits, such as cash, inventory, receivables, or property.
OpenAssets
Assets mean all the things owned by an entity and the potential future benefits of the entity. They are also called economic resources and have future economic value measured in money. Assets are typi...
OpenAssets Held For Sale
are those assets, primarily long-term assets, that an entity wishes to dispose of or liquidate through sale to others.
Openassign
assign In cost accounting this term means to allocate, apply, apportion, or spread manufacturing overhead costs to the production output, In terms of accounts receivable, assign means to pledge accoun...
OpenAssigned Value
Assigned Value is a value that serves as an agreed-upon reference for comparison; normally derived from or based upon experimental work of some national or international organization.
OpenAssociate
An associate is an investee where the investor has significant influence (not control), often evidenced by 20%–50% voting power, and is usually accounted for using the equity method.
OpenAudit
An audit aims to provide reasonable assurance that financial statements are free from material misstatement and are prepared in accordance with the applicable framework.
Open