The accumulated depreciation account is a contra asset account that is reported on the balance sheet. The balance in the accumulated depreciation account is subtracted from the cost of the asset to arrive at the book value of the asset.
Accrual accounting is an accounting method that recognizes economic events regardless of when cash is received or paid. In accrual accounting, revenues and expenses are recognized when they are earned or incurred, rather than when the related cash is received or paid.
An accrued expense is a type of accounting transaction that occurs when a company incurs a cost but does not immediately pay for it. This cost is recorded as a liability on the company's balance sheet until it is paid. Some common examples of accrued expenses include interest expenses, rent expenses, and salaries expenses.
Accounts receivable is the total amount of money that is owed to a company by its customers for goods or services that have been provided on credit. Accounts receivable is considered to be an asset on a company's balance sheet, because it represents money that the company is owed and is expecting to receive.
An accounts payable subsidiary ledger is a ledger that records all of a company's accounts payable transactions. Accounts payable is the amount of money a company owes to its suppliers for goods or services that have been received but have not yet been paid for.