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Articles

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3 Things You Must Know About Net Profit in Income Statement

Net profit in income statement is the "real cash" generated after deducting expenses and cost of goods sold.

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Working Capital: Meaning and Formula

Working capital refers to the difference between current assets and liabilities of a business, measuring the amount needed to carry out its daily activities

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What Is the Double Entry System of Bookkeeping?

The double entry system of bookkeeping records financial transactions in such a way that for every debit, there is an equal and alternative amount of credit

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What is EBITDA? Definition, Formula, and Explanation

There are many financial metrics to evaluate the profitability of a company. These metrics help to measure the overall financial performance of a company and determine the efficiency of a business’s operations. A commonly used measure of profitability is EBITDA.  EBITDA means earnings before interest expense, taxes, depreciation, and amortization. These earnings are devoid of … Continue reading "What is EBITDA? Definition, Formula, and Explanation"

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What are Quick Assets?

Quick assets are highly liquid current assets and investments held by a company that can be easily converted to cash or that are already in the form of cash

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What are Fixed Assets?

Fixed assets are tangible non-current assets owned by a business to generate revenue and derive long term benefits with a useful life of more than a year

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What are Debtors?

A debtor is an individual or organisation, which is a legal entity, and owes money or debt to another entity

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What are Current Assets?

Current assets are business assets that are expected to be converted to cash within one accounting year and used to measure the liquidity of a business

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What are Accounts Receivables?

Accounts receivable are proceeds or payments that are yet to be received from customers who have already availed goods/services from the business

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