Latest posts
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What Is a Suspense Account? Purpose, Meaning, and Real-Life Accounting Applications
In the world of accounting, not every transaction is clear from the start. Sometimes payments arrive without full details, amounts don’t match invoices, or certain entries need verification before being assigned correctly. This is where a suspense account comes in. It serves as a temporary holding space for unclear transactions until their final classification is…
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Capital vs Revenue Expenditure: Definition, Key Differences, and Real-World Examples Explained
Every business, regardless of size or industry, spends money to operate and grow. These expenses fall into two broad categories: capital expenditures and revenue expenditures. While both are vital for a company’s success, they differ in purpose, timing, and financial impact. Understanding how these two types of spending work helps managers, investors, and accountants assess…