Legal monism

ARO: It has an exiting legal obligation Associated with the retirement of a long lived asset and when it can reasonably Estimate liability

Liabilities are obligations arising from past transactions and payable in assets or services in the future.

Cr Liab:obligations whose liquidation is Reasonably expected to require use of existing resources properly classified

Op. Cycle: is the time It takes to convert cash into cash again

Contra: account with a balance that is the Opposite of the normal balance.

sinking: is set up to receive periodic Payments .. Provision to pay off a loan over its life rather than all at Maturity.

Notes Payable: written Promise to pay a sum of money on a specified date-interest component-May be Non-interest bearing.

Zero: is a note that includes interest as Part of its face amount instead of stating it explicitly.

Refin: is the process of swapping out Loans, moving debt to a different loan or lender.

Matching Principle matches Expenses with revenues recorded in the same period.

Contingency: situation or set of circumstances Involving uncertainty as to possible gain or loss.

Gain: claims or rights to receive assets Whose existence is uncertain but which may become valid.

Loss: Could result in recognition of a Contingent liability.

Contingent Liab: Loss Contingencies, depend on the occurrence of one or more future events to confirm Either the amount payable, the payee, the date payable, or its existence.