Borrowing Trouble

Defining Moment

Accrual Accounting
A bookkeeping method that allocates a business's income and expenses to periods to which they apply, even though they haven't actually been received or paid. In this system, when you bill a customer, the amount is immediately reflected in your books as income, regardless of when the invoice is actually paid.

Accounts Payable/Receivable
Accounts payable represent money your business owes to suppliers and other creditors at a given point in time. Accounts receivable are funds owed to you by customers and other debtors.

Accounting Period
A period of time (month, quarter, year) for which a financial statement is produced.

« Previous 1 2 3 4 Page 5

Like this article? Get this issue right now on iPad, Nook or Kindle Fire.

This article was originally published in the April 1999 print edition of Entrepreneur with the headline: Borrowing Trouble.

Loading the player ...

How to Start a Business in 10 Days

Ads by Google

Share Your Thoughts

Most Shared Stories

15 Signs You're an Entrepreneur
10 Things All Entrepreneurs Must Do Before Quitting Their Day Job
Want Media Attention? Target Trades First
25 Common Characteristics of Successful Entrepreneurs
The 80/20 Rule and Listening to Your Inner Procrastinator