⬅ back to main page Anticipatory Breach (or Repudiation) Occurs when one party, before the time for performance arrives, clearly communicates they will not fulfill their contractual obligations.The aggrieved party can sue immediately for breach without waiting for the performance date. Articles of Incorporation (or Certificate of Incorporation) The document filed with a government body (e.g., a Secretary of State) to legally form a corporation. It includes basic information like the company's name, purpose, and share structure. Bylaws The internal governing rules for a corporation, detailing procedures for meetings, elections,the role of directors and officers, and other operational matters. They are adopted by the shareholders or incorporators. Caveat Emptor Caveat Venditor A modern counter-principle meaning “let the seller beware.” It places more responsibility on theseller to disclose defects and ensure product safety, reinforced by consumer protection laws and im...
⬅Previous Chapter | Next Chapter ➡️ Introduction At the conclusion of each accounting period, an organization must meticulously prepare its financial statements to ensure they faithfully represent its economic performance and financial health. This process extends beyond merely compiling recorded transactions. It necessitates a deliberate review to capture all economic activities of the period, including those not yet finalized through cash exchanges or invoices. This chapter provides a comprehensive examination of the period-end adjustment process, a cornerstone of accrual accounting . We will detail the identification and recording of accruals, prepayments, depreciation , and provisions, followed by the preparation of an adjusted trial balance. The process culminates in the closing of temporary accounts and the formal preparation of the Statement of Profit or Loss and Statement of Financial Position . Mastery of these steps is fundamental to adhering to the matching and ...