An accumulated benefit obligation (ABO) estimates an employee’s current pension plan value based on contributions made up to that date. Companies must disclose their ABO for potential investors, as pension payments can become substantial and add significantly to expenses. Pension accounting can identify problems such as shortfalls, and employees can request an overview of their […]
Accrued revenue is money owed for products or services that have not yet been paid for. It is important for service-based businesses and can help increase sales, but can also put a company in a temporary financial hole. Accumulated income is crucial for determining a business’s value and acquiring loans. It generally only applies to […]
Accrued liability is a debt that has not yet been recorded in the accounts payable ledger. Liabilities refer to debts and obligations that a company has, and are subtracted from assets to determine the company’s value. Accrued liabilities can be recurring or non-recurring costs, and can remain on a balance sheet until they are paid […]
