| No. | English | Farsi | Pashto | Subject |
|---|---|---|---|---|
| 571 | normal debit balance: with assets being on the left side of the accounting equation, assets would generally have a debit (left-side) balance, meaning that debits will increase and credits will decrease the balance. Assets = Liabilities + Owner's Equity | - | - | Accounting |
| 572 | current liabilities: obligations to provide cash or other economic resources or services that are due within one year or a company's normal operating cycle. | - | - | Accounting |
| 573 | current assets: cash and other liquid assets (e.g. accounts receivable, inventory, prepaid expenses) that will be used up and/or converted to cash within one year or the company's normal operating cycle. | - | - | Accounting |
| 574 | correcting entries: journal entries that are recorded to correct any errors made during the original recording process. | - | - | Accounting |
| 575 | closing entries: journal entries made at the end of an accounting period to transfer revenues and expenses to the Income Summary account, and then to transfer the Income Summary account and drawings to the Equity account. | - | - | Accounting |
| 576 | acid-test ratio: measures a company's short-term liquidity; it shows how well quick assets can cover current liabilities. Acid-test ratio = (Cash + short-term investments + accounts receivable) divided by current liabilities. | - | - | Accounting |
| 577 | steps in the accounting cycle: (1) analyze business transactions; (2) journalize the transactions; (3) post to the ledger accounts; (4) prepare a trial balance; (5) journalize and post adjusting entries; (6) prepare an adjusted trial balance; (7) prepare financial statements; (8) journalize and post closing entries; (9) prepare a post-closing trial balance. | - | - | Accounting |
| 578 | useful life: an estimated number of years an asset is expected to provide economic usefulness to a business. | - | - | Accounting |
| 579 | straight-line depreciation method: a method where depreciation expense is spread equally over the useful life of an asset; annual depreciation expense = original cost of the asset divided by the number of years of useful life. | - | - | Accounting |
| 580 | principal: in relation to loans, it is the original amount that is borrowed, but can also refer to the amount still owing on the loan after payments have been made. | - | - | Accounting |
| 581 | fiscal year: an accounting period that is one year in length; does not have to coincide with the calendar year. | - | - | Accounting |
| 582 | depreciation: the allocation of the cost of a tangible asset to expense over the asset's useful life. The expense relates to the consumption or use of the asset over the time it is used to earn revenue (matching principle). | - | - | Accounting |
| 583 | contra-asset account: an account with a credit balance that is deducted from the associated asset account on the balance sheet (e.g. accumulated depreciation). | - | - | Accounting |
| 584 | cash-basis accounting: recognizing revenues when the cash is received and expenses when the cash is paid. | - | - | Accounting |
| 585 | carrying amount: the cost of an asset that has not been depreciated; original cost less accumulated depreciation. | - | - | Accounting |