The accrual method is an accounting approach that records income when earned and expenses when incurred, regardless of when cash transactions occur.
Accrued depreciation, also known as accumulated depreciation, refers to the total amount of depreciation expense that has been recorded against a company's assets up to a specified point in time.
Accrued expense is a type of cost that has been incurred but not yet paid during an accounting period. These expenses are accounted for on the books until they are paid off.
Accumulated Depreciation is the total amount of depreciation expense that has been recorded for an asset to date. It represents the wear and tear or reduction in value of the asset over its useful life.
Book value represents the carrying amount of an asset as recorded on the company's balance sheet. It is generally the purchase price of the asset plus any capital improvements minus accumulated depreciation.
In real estate and accounting, a debit refers to an amount that is charged to a party, either in the context of a closing statement or as entries on the left side of a general ledger.
A disclaimer is a statement that rejects responsibility or renunciation of ownership concerning a specific matter. In real estate, disclaimers are commonly used in financial documents and ownership claims.
GAAP (Generally Accepted Accounting Principles) constitutes a common set of accounting standards, principles, and procedures that companies and other entities use to compile their financial statements.
In accounting, the term 'Net Income' refers to the amount remaining after all expenses have been deducted from total revenue. It is a key measure of profitability and is also known as the bottom line. In appraisal, net income can often be termed as net operating income, and in personal finance, it refers to an individual's take-home pay after all taxes and deductions have been subtracted.
A P&L statement, also known as a profit and loss statement, is a financial document that provides a summary of a company's revenues, expenses, and profits/losses over a specific period.
A write-down is an accounting term that describes the reduction in the book value of an asset when its fair market value falls below its carrying value on the balance sheet. This is often recorded to reflect a decrease in the asset's value due to obsolescence, damage, or market conditions.
A write-off is an accounting action where an asset's diminished value is removed from the financial books, reflecting that it is no longer expected to generate economic benefit.
