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The acid-test ratio, also called the quick ratio, measures a company’s ability to meet short-term obligations using its most liquid assets. It usually excludes...

Accumulated depreciation is the total depreciation charged on a fixed asset since it was first put to use. It is shown as a contra...

Accrual basis accounting is a method of accounting where transactions are recorded when they occur rather than when cash is exchanged. Revenue is recognized...

An accrual is the recognition of income or expense when it is earned or incurred, even if cash has not yet been received or...

The accounts receivable turnover ratio measures how efficiently a company collects payments from its credit customers. It is usually calculated by dividing net credit...

Accounts receivable means the money owed to a business by customers for goods sold or services provided on credit. It is recorded as a...

The accounts payable turnover ratio measures how quickly a company pays its suppliers during a given period. It is generally calculated by dividing credit...

Accounts payable means the amounts a business owes to suppliers or vendors for goods and services received but not yet paid for. It is...

An accounting system is the overall process, structure, and often software used to record, classify, process, and report financial transactions. It includes documents, ledgers,...

An accounting ratio is a numerical relationship between two financial figures used to evaluate a business’s performance, position, or efficiency. Examples include current ratio,...

An accounting period is the specific time span for which financial results are measured and reported. It may be monthly, quarterly, or yearly depending...

An accountant is a professional who records, reviews, analyzes, and reports financial information for a business or individual. Their work may include bookkeeping review,...