What does hanging account mean?

Financial accounting can be understood as meaning that due to irregularities in some of the company's business, a certain accounting account should be confirmed but not confirmed.

The reasons for financial debt include:

1. Non-subjective intentional behavior, such as the company receiving advance payments as stipulated in the contract, or failing to confirm all sales revenue in a timely manner after shipping the goods, etc. This behavior resulted in the company having financial debts and underpaying taxes in the current period.

2. Subjective intentional behavior, for example, after the company has a sales business, it deliberately fails to report or under-reports the current sales revenue due to illegal tax avoidance, or delays the revenue recognition time, resulting in under-registration of revenue in the company's finances. This phenomenon has also led to financial debts for enterprises.