Notes Payable

What is Notes Payable? – Definition Notes payable is a liability that results from purchases of goods and services or loans. Usually, a written instrument that includes interest. It is a form of Long-term Debt. Explanation A firm may issue along-term note payable for a variety of reasons. For example, notes may be issued to …

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Natural Resources Definition

What are Natural Resources? Natural resources are the physical substances that when extracted from the ground are converted into inventory, and when sold, produce revenues for the firm.

Net Method of Recording Purchase Discounts

What is the net method of recording purchase discounts? Net method of recording purchase discounts is a method of recording purchase discounts in which the purchase and accounts payable are recorded at the net of the allowable discount. Explanation The net method of recording purchase discounts records the purchase and the accounts payable net of …

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Nonmonetary Assets

What are Nonmonetary Assets? Nonmonetary assets are those assets other than cash are the rights to receive cash, that can generate future revenues, such as property, plant, and equipment. Explanation Noncurrent, nonmonetary assets are often broken down into two categories: tangible and intangible; Tangible assets include property, plant; and equipment and other similar productive assets …

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Nominal (temporary) Accounts Definition

What are Nominal (temporary) Accounts? Nominal Accounts are the separate revenue and expense accounts used only during the period, which have a zero balance at the beginning of each period. These accounts are closed to retained earnings at the end of each period.

Net Income Definition

How to define accounting term Net Income? Net income may be defined as the difference between the total of revenues and gains and the total of expenses and losses.