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An Important Use of the Work Sheet Is as an Aid

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An important use of the work sheet is as an aid in the preparation of financial statements.


Definitions:

Unearned Revenue

Money received by an entity for a service or product that has yet to be provided or delivered.

Non-Interest-Bearing Note

A promissory note with no stated interest rate, implying that interest is either implied in the transaction price or nonexistent.

Interest Expense

The expenses a company faces for borrowing money, usually shown on the income statement.

Discount On Notes Payable

This refers to the difference between the face value of a note payable and the amount received by the issuer, representing extra cost to be amortized over the term of the note.

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