CARRIED FORWARD Meaning and
Definition
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The term "carried forward" refers to the action of transferring or moving a certain amount, value, or information from one period to the next, particularly in the context of financial accounting and reporting. This expression is commonly used to describe the process of bringing forward the balances of various accounts or items in a company's financial statements to the subsequent accounting period.
In financial accounting, carried forward typically represents the end-of-period balance of a particular item, such as income, expenses, profits, losses, or any other account category that directly impacts the financial statements' overall presentation. These balances are carried over to the next accounting period, ensuring their inclusion and continuity in the subsequent financial statements.
The carried forward amount is usually shown as an opening balance in the subsequent period's financial statements, playing a crucial role in maintaining the consistency and accuracy of the historical record and financial information. This practice enables financial statement users to trace the progression and changes in various financial aspects over time, facilitating a comprehensive understanding of a company's performance and financial position.
Carried forward is an essential concept in both manual and computerized accounting systems, ensuring proper record-keeping and transparency. By carrying forward balances, companies adhere to the principle of accrual accounting, which holds that financial transactions should be recorded and reported in the period they occur, regardless of when the associated cash flow takes place.
Overall, the term "carried forward" signifies the transfer of information from one accounting period to another, representing the continuity of account balances and allowing for more accurate financial reporting and analysis.
Common Misspellings for CARRIED FORWARD
- xarried forward
- varried forward
- farried forward
- darried forward
- czrried forward
- csrried forward
- cwrried forward
- cqrried forward
- caeried forward
- cadried forward
- cafried forward
- catried forward
- ca5ried forward
- ca4ried forward
- careied forward
- cardied forward
- carfied forward
- cartied forward
- car5ied forward
- car4ied forward
Etymology of CARRIED FORWARD
The word "carried forward" is a phrase rather than a single word, but it still has a clear etymology.
The term "carry" comes from Middle English "carrien", derived from Old North French "carier", meaning "to carry, transport". This ultimately traces back to the Latin word "carrus", which referred to a "cart" or "wagon".
The word "forward", on the other hand, originates from Old English "foreweard", a compound of "fore" meaning "in front" and "weard" meaning "toward".
Combining these two words, "carried forward" suggests the action of taking something and moving it in the direction of progress or continuation. It is often used in accounting or financial contexts to describe the transfer of a balance or figure from one period or account to the next.
