Accrual accounting is the recognition of revenues and expenses when a transaction occurs rather than when the eventual payment is received. The method is in line with the matching principle, which requires revenues and expenses to be recognized in the same period in which they are incurred. The purpose of this form of accounting is to match revenues and expenses to the time period in which they were incurred, as opposed to the timing of the actual cash inflows and outflows related to them.
An administrative charge is a fee charged by a lender, bank, fund or other investment group for administering a new loan, line of credit, convertible note, and other financing vehicles to your business. Providers use this line item to cover the expenses related to record-keeping, filing and/or other administrative costs. It’s also referred to as an “administrative fee”.
Aggregate Subscription Amount
The aggregate subscription amount is the total dollar amount of the pledged subscriptions under the subscriptions agreement. In other words, it is the gross amount of money that you receive from investors, funds, and groups from a stock, debt or options offering. It is calculated by multiplying the strike price per share by the number of shares purchased in the offering.