It’s a core concept in accrual accounting, where revenue is recognized when earned, not necessarily when payments are received. A business first records these upfront payments as liabilities ...

Accrual accounting is the general accounting term that covers any of these liabilities. Companies use two methods to track these accumulated expenses: accrued expenses or accounts payable.

No, common stock is neither an asset nor a liability; common stock is an equity ... The way a company accounts for common stock issuances can seem complicated. However, at its most basic level ...