Articles related to "Prepaid Expenses"

Prepayments are those made in advance and used throughout an accounting period, such as rent or insurance. It is important to match these payments to the right period.

A key principle in accounting is that expenses and revenue should be matched to the time period that they occur. This can be accomplished by amortization.

The statement of cash flows consists of three sections; operating, investing,and financing activities.This article examines cash flows from operating activities.

Find out the definition of deferred and accrued expense. What are the differences between these two expense terms? What is the affect on the income statement?

A summary of the types of accounts used in accounting, how they fit into the chart of accounts, and how they are related.

Most small business owners are unfamiliar with accounting set up, and often get confused when setting up accounts. Learn what the different types of accounts are, and why

Even if a business has high profitability, it can face short-term financial problems if its funds are locked up in inventories and receivables not realizable for months.

Cash flow is an indicator of a company's financial health. Without a positive cash flow a business may not survive, even if it is profitable.

The balance sheet is an important part of businesses financial statements. The balance sheet is an important tool that shows the net worth of a business at months end.

The first years of a new business can be challenging and often unprofitable. There is merit to purchasing an existing business and avoiding the start-up headaches.