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Business Finance Terms Definition List

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For example, if your company receives $3,000 worth of inventory on January 1st and has agreed to net-60 payment terms, the $3,000 debt would be filed under accounts payable until you pay it off. Cash basis accounting is an accounting method that records revenue and expenses when they are paid for, instead of when transactions occur.

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How Long Do Late Payments Stay on Your Credit Report?

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Fortunately, there are ways to improve your overall credit profile to offset the adverse results that late payments have on your credit score. Equifax, Experian, and TransUnion, the three major credit bureaus, compile the data that creditors report. What Is Considered as a Late Payment?