Finance & Accounting Glossary

Find detailed explanations and examples of finance and accounting terminology.

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Accounts Receivable Journal Entry

Accounts receivable journal entries are important for enterprise companies to track the amount of money owed to them by their customers, assess the financial health of the company, and accurately report financial information to stakeholders.

Accounts Receivable Reporting

Accounts receivable reporting is an essential part of financial management for businesses of all sizes, helping them track and report on the money owed to them by their customers, understand their cash flow, and make informed decisions about their finances.

Accounts Receivable Turnover Ratio

The Accounts Receivable Turnover Ratio (ARTR) is a financial metric used to measure the efficiency of a company's accounts receivable collection process and is an important indicator of the company's liquidity and cash flow. It is calculated by dividing the total net credit sales for a period by the average accounts receivable balance for the same period and is an important metric for enterprise companies to monitor regularly.

Accounts Recievable

Accounts receivable is a current asset on the balance sheet that is used to track money owed to a business by its customers, and is important to manage in order to ensure timely payments and avoid bad debt.

Accrued Expenses

Accrued expenses, recognized but unpaid expenses, are crucial for accurate financial statements and compliance with accounting principles.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to record any unrecognized income or expenses for the period, ensuring that the financial statements accurately reflect the company�s financial position and are necessary for accurate tax calculations and internal decision making.

Amortization

Amortization is the systematic allocation of an intangible asset's cost over its useful life or the scheduled reduction of a debt through regular payments.

Amortization of Prepaid Expenses

Amortization of prepaid expenses is an accounting process used to spread the cost of a prepaid expense over the period of time that the company will receive the benefit from the expense, helping to accurately match the cost of the expense to the period in which it will be used and ensuring accurate financial reporting.

Bad Debt Expense

Bad debt expense is an accounting term used to describe the amount of money a company has lost due to customers not paying their bills, and is an important factor for enterprise companies to track and manage in order to remain profitable and competitive.

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