HBR 20-Minute Manager Boxed Set (10 Books) (HBR 20-Minute Manager Series)

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Key Terms

Accounts payable (A/P). Money owed by a company to

suppliers.

Accounts receivable (A/R). Money owed to a company

for goods or services sold.

Accrual. An amount incurred as an expense in a given

accounting period but not paid by the end of that

period.

Accrual accounting. An accounting method whereby

revenue and expenses are booked when they are in-

curred, regardless of when they are actually received

or paid. Revenue is recognized in the time period

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Finance Basics

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when the goods or services are delivered; expenses

are recognized in the same period as their associated

revenues.

Acid-test ratio. See quick ratio.

Allocation. The process of dividing costs in a certain

category ...