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What is 2/10 N 30?

Definition

2/10 N 30 or 2/10 net 30 is a term that is used in business to business credit sales. It signifies the discount of 2% that a buyer is entitled to if payment is made within 10 days of the invoice…

What is the Ability to Pay Principle?

Definition
The ability to pay principle is a method of taxation that seeks to tax those with greater incomes at higher rates. This form of progressive taxation is viewed as being fair and equitable as it imposes additional taxes on…

What is an Accounting Worksheet?

Definition

An accounting worksheet is a tool used to ensure that the financial statements prepared by a business at the end of an accounting period are accurate and do not contain any errors. It is an intermediate step in the preparation of…

What is Accumulated Amortization?

Definition

Accumulated amortization refers to the total of the expense that has been charged over the years to reduce the value of an intangible asset like a patent or a copyright.

What Does Accumulated Amortization Mean?

When an organization acquires an intangible asset that depletes…

What is Additional Paid In Capital (APIC)?

Definition
Additional paid in capital (APIC) is received from investors when a company issues share capital. The amount that is collected for each share is equal to the sum of the share’s par value and an additional amount. This extra…