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What is the purpose of the motor circuit?
Fiscal Period
A specific time period for which an organization prepares financial statements, typically a year, but can also be a quarter or month.
Deferred Expense
A deferred expense is an expenditure that is made in advance and recorded as an asset until it is consumed or its value expires, at which point it is charged to expense.
Accrual Basis
An accounting method where transactions are recorded when they are earned or incurred, regardless of when cash is exchanged.
Matching Concept
An accounting principle that requires the expenses to be matched with the revenues they helped to generate in the same accounting period.
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