Accrued interest refers to the interest that has been earned but not yet paid or received. It is often reported during interim periods between scheduled interest payments, and it accumulates from the date of issuance or the time of last interest payment.
Constructive receipt defines the tax obligation associated with the right to receive income, regardless of whether the income is physically in hand. It influences both cash flows in tax reporting and real estate exchange transactions.
General and Administrative Expenses (G&A) refer to the expenditures an organization incurs for the daily operations and management of its business, distinct from costs involved in production or sales. They encompass a range of operational overheads such as management salaries, office rent, utilities, and accounting fees.
Net Realizable Value (NRV) is the estimated selling price of a property in the ordinary course of business, less reasonably predictable costs of completion and selling expenses. It is a crucial concept particularly in inventory and financial accounting, where it's used to ensure assets are not overstated in financial statements.
Prepaid expenses refer to amounts that are paid in advance for goods or services to be received in the future. These expenses are recorded as assets until they are consumed, at which point they are expensed on the income statement.
A reserve for depreciation, also known as accumulated depreciation, helps businesses account for the gradual reduction in value of their fixed assets over time due to wear and tear, obsolescence, or other factors.
Salvage value is the estimated value an asset will have at the end of its useful life. It is an important concept in accounting and real estate for calculating depreciation.
