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Financial Terms | |
Permanent accounts |
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Definition of Permanent accountsPermanent accountsThe accounts found on the Balance Sheet; these account balances are carried forward for the lifetime of the company.
Related Terms:Accounts‘Buckets’ within the ledger, part of the accounting system. Each account contains similar transactions (line items) that are used for the production of financial statements. Or commonly used as an abbreviation for financial statements. Accounts payableMoney owed to suppliers. ACCOUNTS PAYABLEAmounts a company owes to creditors. Accounts payableAmounts owed by the company for goods and services that have been received, but have not yet been paid for. Usually accounts payable involves the receipt of an invoice from the company providing the services or goods. accounts payableShort-term, non-interest-bearing liabilities of a business Accounts payableAcurrent liability on the balance sheet, representing short-term obligations Accounts PayableAmounts due to vendors for purchases on open account, that is, not evidenced ![]() Accounts Payable Days (A/P Days)The number of days it would take to pay the ending balance Accounts receivableMoney owed by customers. ACCOUNTS RECEIVABLEAmounts owed to a company by customers that it sold to on credit. Total accounts receivable are usually reduced by an allowance for doubtful accounts. Accounts receivableAmounts owed to the company, generally for sales that it has made. accounts receivableShort-term, non-interest-bearing debts owed to a Accounts receivableA current asset on the balance sheet, representing short-term Accounts ReceivableAmounts due from customers for sales on open account, not evidenced Accounts ReceivableMoney owed to a business for merchandise or services sold on open account. Accounts Receivable Days (A/R Days)The number of days it would take to collect the ending Accounts receivable turnoverThe ratio of net credit sales to average accounts receivable, a measure of how accounts receivable turnover ratioA ratio computed by dividing annual Allowance for doubtful accountsA contra account related to accounts receivable that represents the amounts that the company expects will not be collected. Allowance for Doubtful AccountsAn estimate of the uncollectible portion of accounts receivable Average age of accounts receivableThe weighted-average age of all of the firm's outstanding invoices. Balance of Payments AccountsA statement of a country's transactions with other countries. Chart of accountsA listing of all accounts used in the general ledger, usually sorted in Discounting of Accounts ReceivableShort-term financing in which accounts receivable are used as collateral to secure a loan. The lender does not buy the accounts receivable but simply uses them as collateral for the loan. Also called pledging of accounts receivable. IRA/Keogh accountsSpecial accounts where you can save and invest, and the taxes are deferred until money National Income and Product AccountsThe national accounting system that records economic activity such as GDP and related measures. Permanent CapitalFinancing needed for the normal operation of a business, that is long term capital and working capital. Permanent Income HypothesisTheory that individuals base current consumption spending on their perceived long-run average income rather than their current income. Provision for Doubtful AccountsAn operating expense recorded when the allowance for Temporary accountsThe accounts found on the Income Statement and the Statement of Retained Earnings; these accounts are reduced to zero at the end of every accounting period. Unbilled Accounts ReceivableRevenue recognized under the percentage-of-completion Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |