Term
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Definition
| Perfectly match the expense to the time period in which it actually happened. Ex) pay contractor $30,000 for a three month project, record it as $10,000 for each month, rather than $30,000 on month 3. |
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Term
| Profit and Loss Statement |
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Definition
| Describes money coming into and going out of the business |
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Term
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Definition
| "Top line," total amount of money you've earned over a given amount of time (not net profit). |
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Term
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Definition
| Determines how much revenue to put on accounting statements in a given time period. Revenues are realized when they are realized (like when an ad you've paid for is put up). Part of accrual accounting. |
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