前受金 (maeukekin) refers to "advance received" or "prepayment" in English. This term is used in accounting and finance to describe money received by a company from its customers before the goods or services have been delivered or rendered.
In the context of Japanese business, maeukekin is recorded as a liability on the company's balance sheet. This is because the company owes the goods or services to the customer in the future.
A customer pays for goods or services before receiving them. The company records this payment as maeukekin (liability) because the company still needs to fulfill its obligation to the customer. Once the goods or services are delivered, the liability is removed, and the revenue is recognized.
This practice ensures accurate financial reporting and helps manage cash flow by tracking money received in advance.
See Also
In Japanese, the term 経費 (keihi) refers to "expenses" or "business expenses." These are the costs incurred in the process of running a business. Keihi can include a wide range of expenditures such as rent for office space, utilities like electricity, water, and internet, employee salaries and wages, office supplies, travel expenses, marketing and advertising costs, and depreciation of assets. Properly tracking and managing keihi is essential for maintaining accurate financial records, budgeting, and ensuring compliance with tax regulations. In Japan, businesses must be meticulous in documenting and categorizing their expenses to maximize tax deductions and maintain transparency with the tax authorities.
償却資産 (shoukyaku shisan) is a Japanese term that translates to "depreciable assets" or "amortizable assets" in English. It refers to tangible fixed assets that are subject to depreciation over time due to wear and tear, obsolescence, or usage.
Examples of 償却資産 include machinery, equipment, buildings, and vehicles. These assets are capitalized on a company's balance sheet and their cost is gradually expensed through depreciation over their useful life. This accounting practice helps in matching the cost of the asset with the revenue it generates, providing a more accurate picture of a company's financial performance.
供託 (kyoutaku) is a Japanese term that translates to "deposit" or "escrow" in English. It refers to the act of depositing money, securities, or other valuables with a government office or a designated entity to fulfill a legal obligation or to ensure the performance of a contract.
In Japan, 供託 is commonly used in various legal and financial contexts. For example, it can be used to settle disputes, provide security for a loan, or ensure the payment of rent or other obligations. The deposited assets are held in trust by the government office or entity until the conditions of the deposit are met or resolved. This system helps to protect the interests of all parties involved and ensures that legal and contractual obligations are fulfilled.
Frequently Asked Questions
前受金 (maeukekin) refers to "advance received" or "prepayment" in English. This term is used in accounting and finance to describe money received by a company from its customers before the goods or services have been delivered or rendered.
Advance received or prepayment is 前受金 (maeukekin) in Japanese.
← Back to Glossary
Japan’s first bilingual virtual mail, virtual address, and virtual receptionist provider
Get an all-in-one bilingual mail and compliance service to power the growth of your startup in Japan.
