The HBR Guides Collection (8 Books) (HBR Guide Series)

Glossary

Accounts Payable. A category of balance-sheet liabilities

representing funds owed by the company to suppliers

and other short-term creditors.

Accounts Receivable. A category of balance-sheet assets

representing funds owed to the company by customers

and others.

Accrual Accounting. An accounting practice that records

transactions as they occur, whether or not cash trades

hands.

Allocations. See indirect costs.

Assets. The balance-sheet items in which a company in-

vests so that it can conduct business. Examples include

cash and fi nancial instruments, inventories of raw mate-

rials and fi nished goods, land, buildings, and equipment.

Adapted ...