A representation of money, resources, transactions, claims to resources and changes in resources in words or other units of measurement.
E.g. Account Receivable: represents resources (money) you have a claim to against a debtor
Amount of money you owe a creditor.
Amount of money due from customers or debtors
Recording and reporting of financial transactions including origin of transaction, treatment and summarization in the financial statements
Recognizing a revenue or expense when a transaction has occurred but the money has not yet been earned or paid.
An expense that has occurred but has not yet been realized
Accrued Payroll Taxes
Payroll taxes that have occurred but not yet been recognized in the accounts
A systematic reduction in value over a period of time of intangible assets such as licenses. Cf Depreciation
Increase in value of an asset.
Anything of value to which a company has legal claim that is expected to be of economic benefit in the future. It can be tangible or intangible
E.g. Land: Is an asset because of possible appreciation in value as well as providing a location to carry out economic activities.