GLOSSARY

absorbed costs: Overhead costs that have gone into the cost of products that have been manufactured.

accelerated depreciation: Any method of depreciation that loads higher depreciation expense into the early years of an asset’s useful life.

accounts payable: Money that is owed to suppliers of goods or services. It is, in effect, an interest-free loan from the suppliers.

accounts receivable: Debts owed by others to the entity, usually for goods and services.

accounts receivable turnover: How many times accounts receivable were collected during the year. (Net sales divided by accounts receivable.)

accrual accounting: The process of recording transactions when they happen (not when they are paid for) to meet the matching principle.

accumulated ...

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