|
Advance Payment
An advance payment, or simply an advance, is the part of a contractually due sum that is paid or received in advance for goods or services, while the balance included in the invoice will only follow the delivery. Advance payments are recorded as a prepaid expense in ''accrual accounting'' for the entity issuing the advance. Advanced payments are recorded as assets on the balance sheet. As these assets are used they are expended and recorded on the income statement for the period in which they are incurred. Insurance is a common prepaid asset, which will only be a prepaid asset because it is a proactive measure to protect business from unforeseen events. See also *Advance against royalties *Chicago Options Associates *Pay or play contract *Prepaid expense A deferral, in ''accrual accounting'', is any account where the income or expense is not recognised until a future date (accounting period), e.g. annuities, charges, taxes, income, etc. The deferred item may be carried, depen ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contract
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or rescission. Contract law, the field of the law of obligations concerned with contracts, is based on the principle that agreements must be honoured. Contract law, like other areas of private law, varies between jurisdictions. The various systems of contract law can broadly be split between common law jurisdictions, civil law jurisdictions, and mixed law jurisdictions which combine elements of both common and civil law. Common law jurisdictions typically require contracts to include consideration in order to be valid, whereas civil and most mixed law jurisdictions solely require a meeting of th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Balance (accounting)
In banking and accounting, the balance is the amount of money owed (or due) on an account. In bookkeeping, “balance” is the difference between the sum of debit entries and the sum of credit entries entered into an account during a financial period. When total debits exceed total credits, the account indicates a debit balance. The opposite is true when the total credit exceeds total debits, the account indicates a credit balance. If the debit/credit totals are equal, the balances are considered zeroed out. In an accounting period, "balance" reflects the net value of assets and liabilities to better understand balance in the accounting equation. Balancing the books refers to the primary balance sheet In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business ... equation of: : Assets = liabi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Invoice
An invoice, bill or tab is a commercial document issued by a seller to a buyer relating to a sale transaction and indicating the products, quantities, and agreed-upon prices for products or services the seller had provided the buyer. Payment terms are usually stated on the invoice. These may specify that the buyer has a maximum number of days to pay and is sometimes offered a discount if paid before the due date. The buyer could have already paid for the products or services listed on the invoice. To avoid confusion and consequent unnecessary communications from buyer to seller, some sellers clearly state in large and capital letters on an invoice whether it has already been paid. From a seller's point of view, an invoice is a ''sales invoice''. From a buyer's point of view, an invoice is a ''purchase invoice''. The document indicates the buyer and seller, but the term ''invoice'' indicates money is owed ''or'' owing. Within the European Union, an invoice is primarily legally ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Prepaid Expense
A deferral, in ''accrual accounting'', is any account where the income or expense is not recognised until a future date (accounting period), e.g. annuities, charges, taxes, income, etc. The deferred item may be carried, dependent on type of deferral, as either an asset or liability. See also accrual. Deferrals are the consequence of the revenue recognition principle which dictates that revenues be recognized in the period in which they occur, and the matching principle which dictates expenses to be recognized in the period in which they are incurred. Deferrals are the result of cash flows occurring before they are allowed to be recognized under accrual accounting. As a result, adjusting entries are required to reconcile a flow of cash (or rarely other non-cash items) with events that have not occurred yet as either liabilities or assets. Because of the similarity between deferrals and their corresponding accruals, they are commonly conflated. * Deferred expense: cash has lef ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Accrual Accounting
Accrual (''accumulation'') of something is, in finance, the adding together of interest or different investments over a period of time. Accruals in accounting For example, a company delivers a product to a customer who will pay for it 30 days later in the next fiscal year, which starts a week after the delivery. The company recognizes the proceeds as a revenue in its current income statement still for the fiscal year of the delivery, even though it will not get paid until the following accounting period. The proceeds are also an accrued income (asset) on the balance sheet for the delivery fiscal year, but not for the next fiscal year when cash is received. Similarly, the salesperson who sold the product earned a commission at the moment of sale (or delivery). The company will recognize the commission as an expense in its current income statement, even though the salesperson will actually get paid at the end of the following week in the next accounting period. The commission is ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Advance Against Royalties
In the field of intellectual property licensing, an advance against royalties is a payment made by the licensee to the licensor at the start of the period of licensing (usually immediately upon contract, or on delivery of the property being licensed) which is to be offset against future royalty payments. It is also known as a ''guaranteed minimum royalty payment''. For example, a book's author may sell a license to a publisher in return for 5% royalties on sales of the book and a $5,000 advance against those royalties. In this case, the author would immediately receive the $5,000, and royalty payments would be withheld until $5000 in royalties already paid had been earned — that is, until the publisher's takings from selling copies of the book reached $100,000; after that point the 5% royalty would be paid on any additional sales. In some business areas (e.g. film production), it is common practice for the licensee to demand repayment of any advance that is not covered by r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Chicago Options Associates
Chicago Options Associates (COA) is a finance company in Chicago, Illinois which specializes in trading options and futures contracts. It was founded in 1987 by Oliver R. W. Pergams and Michael E. Davis. In 1994 Davis was its chief executive officer, hiring then-graduate student Jimmy Wales as research director; Wales served in this position until 1998. The company and Davis were the subject of litigation resulting from a 2007 Illinois Supreme Court decision. In ''Dowling v. Chicago Options Associates'', plaintiff Brian Dowling successfully sued the company (and Davis), winning a judgement of US$817,830.45 from both defendants. Davis tried to shield his assets by transferring funds to a law firm, DLA Piper, which had assisted him in buying a home in Florida. During this representation, Davis paid a retainer of $100,000 to DLA Piper; Dowling maintained that he was owed this money. Although the circuit and appellate courts agreed with Dowling, the Illinois Supreme Court reversed ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pay Or Play Contract
In filmmaking Filmmaking (film production) is the process by which a motion picture is produced. Filmmaking involves a number of complex and discrete stages, starting with an initial story, idea, or commission. It then continues through screenwriting, cast ..., a guarantee, or informally a "pay-or-play" contract, is a term in a contract of an actor, director, or other participant that guarantees pay if the participant is released from the contract with various exceptions. Studios are reluctant to agree to guarantees but accept them as part of the deal for signing major talent. They also have the advantage of enabling a studio to remove a participant under such a contract, with few legal complications. As Appleton writes, "''Memoirs of a Geisha'' is an example of a film on which the provision came into play... several actors were hired by the studio under pay-or-play deals. When the contracted start date came and went, those actors began receiving their full salary as if they ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Prepaid Expense
A deferral, in ''accrual accounting'', is any account where the income or expense is not recognised until a future date (accounting period), e.g. annuities, charges, taxes, income, etc. The deferred item may be carried, dependent on type of deferral, as either an asset or liability. See also accrual. Deferrals are the consequence of the revenue recognition principle which dictates that revenues be recognized in the period in which they occur, and the matching principle which dictates expenses to be recognized in the period in which they are incurred. Deferrals are the result of cash flows occurring before they are allowed to be recognized under accrual accounting. As a result, adjusting entries are required to reconcile a flow of cash (or rarely other non-cash items) with events that have not occurred yet as either liabilities or assets. Because of the similarity between deferrals and their corresponding accruals, they are commonly conflated. * Deferred expense: cash has lef ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Signing Bonus
A signing bonus or sign-on bonus is a sum of money paid to a new employee (including a professional sports person) by a company as an incentive to join that company. They are often given as a way of making a compensation package more attractive to the employee (e.g., if the annual salary is lower than they desire). It also lowers the risk to the company as it is a one-time payment; for example, if the employee does not meet expectations, the company has not committed to a higher salary. Signing bonuses are often used in professional sports, and to recruit graduates into their first jobs. To encourage employees to stay at the organization, there are often clauses in the contract whereby if the employee quits before a specified period, they must return the signing bonus. In sports contracts, the full amount of signing bonuses is not always paid immediately, but spread out over time. In such cases, the main difference between a signing bonus and base salary is that the former is "g ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Expense
An expense is an item requiring an outflow of money, or any form of Wealth, fortune in general, to another person or group as payment for an item, service, or other category of costs. For a leasehold estate, tenant, renting, rent is an expense. For students or parents, tuition is an expense. Buying food, clothing, furniture, or an automobile is often referred to as an expense. An expense is a cost that is "paid" or "Remittance, remitted", usually in exchange for something of value. Something that seems to cost a great deal is "expensive". Something that seems to cost little is "inexpensive". "Expenses of the table" are expenses for dining, refreshments, a Banquet, feast, etc. In accounting, ''expense'' is any specific outflow of cash or other valuable assets from a person or company to another person or company. This outflow is generally one side of a trade for products or services that have equal or better current or future value to the buyer than to the seller. Technically, an ex ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
