Accrual principle: related pages

A balance sheet item for expenses for which invoices have not been received at the end of an accounting period.

The addition to the balance sheet as an asset of an amount that could otherwise have been treated as an expense.

A statement which shows the movement of cash (i.e. spent and received) during a given period.

The accrued cost of the goods (or services) supplied in a period; the difference between sales and gross profit.

The allocation of the cost of an asset to the profit and lost account by allocating part of the cost to each year of its estimated useful life.

Fixed assets are assets that have a remaining life over an year.

The assumption for the purposes of accounting or valuation, or the fact in the case of a sale, that a business will continue to operate.

Any amounts that have been paid for goods and services not received by the end of an accounting period. Shown as a current asset in accounts.

The part of stocks (inventory) that has had some work done on it, but which has not yet been made into goods ready for sale.