business law

A cost incurred by a company through its operations to earn revenue.

A record of a financial transaction in the appropriate accounting ledger.

Also known as retained earnings, it is the portion of the profit that the company retains in order to reinvest in the business or repay debt.

 A written order of payment by one party (the drawer) to another party (the drawee) to pay a particular sum to a third party (the payee) on or before a particular date.

A fundamental accounting concept where every transaction or event affects at least two different accounts.  In modern day accounting and bookkeeping, the double-entry accounting system is expressed as (Assets = Liabilities + Equity).

1) In the accounting context, the allocation of a physical asset's cost over its useful life.

2) The gradual loss in value of an asset.

 Where liabilities exceed assets or expenses exceed income.

 A type of debt-creating instrument, such as a promissory note, that is not secured by a physical asset or other collateral.  Companies and governments often rely on this type of instrument in order to secure capital.

Mutually dependent conditions in a contract that must be performed simultaneously in order for the specific contract to be considered legally enforceable. 

The act of intentionally not revealing information that should be disclosed and would otherwise affect the terms or creation of a contract.  A concealment can occur through either purposeful misrepresentation or withholding of material facts.  

Where the information could not have been known by the other party and it is known to be material by the concealing party, the concealment can give grounds for nullifying the contract.