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Average Cost:
A method of inventory ... A method of inventory valuation whereby the total cost of all units bought or produced is divided by the number of units.

Accounts Payable:
Amounts owed ... Amounts owed by the business for purchases made on credit. These amounts are paid by the business after a time lag that is measured by Days Payable Outstanding (DPO).

ASSET SALE:
is the sale of certai... is the sale of certain named assets of a corporation, partnership or sole proprietorship. Usually the seller retains ownership of the cash and cash equivalents (such as Accounts Receivable) and the liabilities of the entity. The seller then will pay the liabilities with the cash, any down payment and the cash equivalents as they become cash. Assets named are typically trade name, trade fixtures, inventory, leasehold rights, telephone number rights and goodwill. Assets sold can be tangible or intangible.

accrual principle :
Fundamental accounting ... Fundamental accounting concept which recognizes the time lag between sales and purchases on one hand, and collection and payment of cash on the other. It forms an important part of the GAAP, and permits meaningful comparisons based on the actual operations of the business undisturbed by the timing of payments. Under this principle, sales and expenses are taken account of in the accounting period in which they occur (and are included in the income statement for that period), whether or not cash was received or paid out. Also called accrual concept. See also accounting concepts.

 

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