by Small Business Accounting Software | Oct 10, 2025 | Chart of Accounts, Expenses, Terminologies
The cost of items like pens, paper, and printer cartridges consumed during operations. Recorded when used, not purchased if immaterial. Distinct from inventory.
by Small Business Accounting Software | Oct 5, 2025 | Chart of Accounts, Terminologies
Estimated costs associated with product warranties. Recorded when sales occur, based on historical data. It reflects obligations to repair or replace defective products.
by Small Business Accounting Software | Oct 2, 2025 | Chart of Accounts, Terminologies
Revenue from long-term service agreements, such as annual maintenance or IT support. Recognized gradually as services are performed. Provides a stable income stream.
by Small Business Accounting Software | Sep 27, 2025 | Chart of Accounts, Terminologies
Company’s own shares that were repurchased from shareholders. It reduces equity since these shares are no longer outstanding. Often used for stock compensation or market stabilization.
by Small Business Accounting Software | Sep 27, 2025 | Chart of Accounts, Terminologies
Represents amounts investors pay above par value when purchasing stock. It reflects extra equity contributions. Often arises in public offerings.
by Small Business Accounting Software | Sep 26, 2025 | Chart of Accounts, Terminologies
Earnings from investments, bank deposits, or loans. Provides passive income outside main operations. Recorded when earned, not necessarily received.
