Sunday, March 16, 2014

Term of the Day: Dangling Debit



March 16, 2014
Dangling Debit
A debit entry with no offsetting credit entry. Dangling debit occurs when a company purchases goodwill or services to create a debit. When adding the journal entry to financial statements a corresponding credit balance is not reported and cannot be written off. Dangling debit can be received when a company is acquired but is not recorded on the balance sheet.
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