Accompt Solutions

Banking and finance just got as easy as shopping... with just a click... Launching soon.

Unearned income is considered a current liability because it is an amount owed to a customer for an amount received for goods or services not provided. In other words, it a payable to customer who gave us cash and is waiting for us provide the goods or services they paid for. These unearned accounts are usually reported as current debts because they are typically settled within a year. They may also be classified as long-term if management expects it to take longer than 12 months to provide the goods or services to the customer.

Equity financing refers to the sale of company shares in order to raise capital. Investors who purchase the shares are also purchasing ownership rights to the company. Equity financing can refer to the sale of all equity instruments, such as common stock, preferred shares, share warrants, etc.

Historical cost is what your company paid for an asset when you originally bought it. That cost is verifiable by a receipt or other official record of the initial transaction. It is a static snapshot of asset value at the time of purchase and provides no measure of how value may have changed over time.