Articles
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.
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
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
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"
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
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
What are Debtors?
A debtor is an individual or organisation, which is a legal entity, and owes money or debt to another entity
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
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