by Small Business Accounting Software | Jul 29, 2026 | Terminologies
The difference between sales revenue and variable costs. It contributes toward covering fixed costs and generating profit. Used in cost-volume-profit analysis.
by Small Business Accounting Software | Jul 28, 2026 | Terminologies
The estimated value of an asset at the end of its useful life. Used in calculating depreciation. Also called salvage value.
by Small Business Accounting Software | Jul 28, 2026 | Terminologies
Requires expenses to be recorded in the same period as the revenues they help generate. This prevents mismatched reporting of costs and income. Essential for accurate net income measurement.
by Small Business Accounting Software | Jul 28, 2026 | Terminologies
End-of-period journal entries to update accounts for accruals, deferrals, or estimates. Examples include accrued wages or depreciation. They ensure revenues and expenses match the proper period.
by Small Business Accounting Software | Jul 27, 2026 | Assets, Chart of Accounts, Terminologies
Represents reductions in purchases when goods are returned or discounts are received for defective merchandise. It is a contra-account to Purchases. Provides insights into vendor reliability.
