Glossary

Definition It is the interest expense or revenue earned or incurred but not paid or received as of a specific date. It’s a crucial concept in accrual accounting, which requires revenues and expenses to be recognized in the period they are earned or incurred, regardless

Definition Accrued expenses (or liabilities) are expenses a business has incurred but has not yet paid for. They are recognized on the income statement in the period they are incurred, regardless of when the cash payment is made. This core accrual accounting concept aims to

Definition It is a method in which revenues and expenses are recognized when earned or incurred, respectively, regardless of when cash is exchanged. This differs from cash accounting, which recognizes revenues when cash is received and expenses when money is paid. Accrual accounting provides a

Definition An accredited investor is a designation defined by securities regulations (specifically, Rule 501 of Regulation D under the Securities Act of 1933 in the United States) that allows specific individuals and entities to invest in unregistered securities offerings, such as private placements, hedge funds,

Definition Accounts receivable loans, also known as accounts receivable financing or invoice financing, are short-term loans where a company uses its outstanding invoices (accounts receivable) as collateral. This allows businesses to access cash quickly without waiting for customers to pay their invoices, improving immediate cash

Definition Accounts receivable refers to the money a company owes its customers for goods or services delivered but not yet paid for. On the balance sheet, accounts receivable are classified as current assets. Depending on the payment terms, they typically represent amounts due within a

Definition Refers to a company’s outstanding obligations to suppliers or vendors for goods or services received but not yet paid for.  It represents the amount a company can pay for items or services it has received but not yet paid for. Classified as a part

Definition A computer program that automates and streamlines financial transactions and reporting for businesses and organizations while replacing manual bookkeeping methods—which can be time-consuming and prone to errors. These systems (accounting programs) reduce errors, save time, and provide real-time insights into financial performance. They range

Definition Also known as the “basic accounting equation” or the “balance sheet equation,” it is the fundamental of double-entry bookkeeping and a base principle in accounting. It states the relationship between a company’s assets, liabilities, and owner’s equity (or shareholders’ equity for corporations).     In

Definition Accelerators are programs that aid early-stage startups in scaling for growth. These programs are structured to expedite growth within a fixed timeframe, typically lasting a few months. In exchange for equity, accelerators provide startups with resources, mentorship, and often seed funding, fostering rapid scaling