A secured loan is borrowing backed by specific collateral, such as property, inventory, equipment, or receivables. If the borrower defaults, the lender has the legal right to claim the pledged asset to recover the dues. In accounting records, secured loans are reported as liabilities, while the pledged asset normally remains on the balance sheet unless repossessed or legally transferred.
Systematic Allocation
Systematic allocation means spreading a cost over time or across units using a consistent and rational method. Depreciation and amortization are common examples of...
Suspense Account
A suspense account is a temporary account used to hold amounts when the correct accounting treatment or account head is not yet known. It...
Sunk Cost
A sunk cost is a cost that has already been incurred and cannot be recovered, regardless of future decisions. Since it cannot be changed,...
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