by How To Set Up | Dec 22, 2025 | Uncategorized
Income from selling goods or services. It is the primary revenue stream for most companies. Recorded net of returns and discounts.
by How To Set Up | Dec 21, 2025 | Uncategorized
Costs paid in advance that will benefit future periods, such as prepaid insurance or rent. Initially recorded as assets, then expensed gradually. Matches costs with related revenues.
by How To Set Up | Dec 21, 2025 | Uncategorized
Tracks personal expenses mistakenly or intentionally paid from business funds (e.g., personal groceries, vacations). In accounting, these are recorded separately for clarity, then reclassified as Owner’s Drawings. Ensures accurate tax reporting.
by How To Set Up | Dec 20, 2025 | Uncategorized
The pricing of goods and services exchanged between divisions of the same company, often across borders. Regulated to prevent tax avoidance. Requires careful documentation.
by How To Set Up | Dec 16, 2025 | Uncategorized
Earnings from investments, bank deposits, or loans. Provides passive income outside main operations. Recorded when earned, not necessarily received.
