In accounting terms, an asset refers to any resource owned or controlled by an entity that is expected to provide future economic benefits. Assets can be either tangible or intangible.
A Capital Lease, in the USA, is a lease that does not legally constitute a purchase but is recorded as an asset on the lessee's books under certain conditions.
In accounting, a debit (DR) refers to any entry recording an addition to an asset or expense account, or a reduction from a liability or equity account.
A deferred charge is an intangible expenditure that is carried forward as an asset and amortized over the life of the benefit it represents. An example includes fees for arranging a 30-year mortgage on income-producing real estate.
Depreciable Life refers to the period over which the cost of an asset is spread for tax purposes, or the estimated useful life of an asset for appraisal purposes.
A clause included in a contract of sale in which the seller retains the title of goods sold until they have been paid for. Crucial for accountants, it affects stock ownership and requires assessing the commercial substance of transactions.
A transaction is an external or internal event that causes a change affecting the operations or finances of an organization.
