What is Revenue Recognition?
Revenue recognition is the accounting principle that determines when a sale is officially recorded, not when the invoice is sent or the […]
What does Retained Earnings vs Cash mean?
Retained earnings is the cumulative profit kept in the business since incorporation; cash is what is actually in the bank, and they […]
What is Profitability Analysis?
Profitability analysis examines where a business actually makes money, by product, service, customer, or channel, rather than simply confirming that the total […]
What is the difference between Profit and Cash Flow?
Profit is an accounting measure of what was earned after expenses; cash flow is what actually moved through the bank account, and […]
What is Percentage of Completion Accounting?
Percentage of completion is a revenue recognition method that records revenue and costs as a long-term project is completed over time, rather […]
What is Payroll?
Payroll is the process of calculating, remitting, and reporting employee compensation and the associated statutory deductions, CPP, EI, and income tax, to […]
What is Owner’s Equity?
Owner’s equity is what remains on the balance sheet after all liabilities are subtracted from all assets, the accumulated financial interest of […]
What is the difference between Operating and Capital Expenses?
Operating expenses are recurring costs deducted in the year they are incurred; capital expenses are investments in long-term assets that are expensed […]
What are Non-Cash Expenses?
Non-cash expenses reduce reported profit on the income statement without any cash leaving the business, with depreciation and amortization being the most […]
What is Month-End Close?
Month-end close is the process of finalizing all financial records after each period ends: posting transactions, reconciling accounts, recording accruals, and producing […]
What is the difference between Markup and Margin?
Markup is the percentage added to cost to set a price; margin is the percentage of that price that is profit, and […]
What is Job Costing?
Job costing tracks every cost associated with a specific project or engagement so it is clear how profitable each piece of work […]