Accounting jargOn Vocabulary Accounts Receivable: These are considered to be an asset to your business. Accounts receivables are any monies owed to you by clients that they are legally obliged to pay. Accruals: Accruals are simply a list of expenses that...
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Accounting jargOn Vocabulary Accounts Receivable: These are considered to be an asset to your business. Accounts receivables are any monies owed to you by clients that they are legally obliged to pay. Accruals: Accruals are simply a list of expenses that have been incurred but are not yet paid. Accrual Basis This is an accounting method whereby you record income as it is invoiced (not yet received) and expenses as bills are received (not yet paid). Acid Test Is a stringent measure of a company’s ability to pay its short-term debts.
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