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The Accounting Rate of Return (ARR) formula is useful in determining a project’s annual percentage rate of return. Accounting Theory provides guidance on effective accounting and financial reporting. Receivables maturity is the process of distinguishing open receivables based on the length of time an invoice remains unpaid. Accounts receivable financing provides capital financing for a portion of a company’s receivables. Accumulation is the accumulation of interest, income or expenses over time - a popular example is interest on a savings account. Accrued income is income that has been received but not yet received. An accrued liability arises when an entity has incurred expenses but has not yet paid them. Accrued revenue is used in accrual accounting where revenue is recorded at the time of sale, even if payment has not yet been received. Depreciation is taken into account to relate the cost of using long-term fixed capital to the benefits received from its use over time. Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.