Related Words

Cash-Equivalent Items: An accounting book that is composed of cash receipts plus disbursements. This balance is posted to the cash account in the ledger.

Prepaid Items: On a closing statement, items that have been paid in advance by the seller, such as insurance premiums and some real estate taxes, for which he or she must be reimbursed by the buyer.

Noncash Items: Items included in the determination of net income on an accrual basis that do not affect cash: examples are depreciation and amortization.

Counterpart Items: Stocks whose price tends to rise when the economy is in recession or the market is bearish, and vice versa.

Accrued Items: In a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.

Extraordinary Items: Nonoperating gains and losses that are unusual in nature, infrequent in occurrence, and material in amount.