What is the Difference Between an Asset Sale and a Share Sale?
In an asset sale, the buyer purchases specific assets and liabilities of the business; in a share sale, they purchase the shares […]
What is Attractiveness vs Readiness?
Attractiveness measures how appealing a business is to buyers based on performance and growth potential; readiness measures how prepared it is to […]
What is Asset-Based Lending?
Asset-based lending is a form of business financing where the loan is structured around the value of specific assets, receivables, inventory, equipment, […]
What is Accounts Receivable Financing?
Accounts receivable financing is a funding arrangement where a business borrows against or sells its outstanding invoices to access cash before customers […]
What is an Arm’s Length Transaction?
An arm’s length transaction is a deal between unrelated parties acting independently in their own interests, the standard the CRA uses to […]
What is Adjusted Cost Base (ACB)?
Adjusted cost base is the CRA’s measure of what was paid for a capital property, including acquisition costs and improvements, and it […]
What is Active Business Income?
Active business income is the profit a corporation earns from actually running a business, and it is the income that qualifies for […]
What are Financial Statements?
Accounts receivable financing is a funding arrangement where a business borrows against or sells its outstanding invoices to access cash before customers […]
What is a Chart of Accounts?
A chart of accounts is the structured classification system that organizes every transaction a business records and determines whether financial statements answer […]
What is the difference between Cash and Accrual Accounting?
Cash accounting records transactions when money changes hands; accrual accounting records them when they are earned or incurred, and the CRA requires […]
What is Accounts Receivable?
Accounts receivable is the total customers owe for work already completed or products already delivered. Essentially, it is revenue earned but not […]
What is Accounts Payable?
Accounts payable is the total a business currently owes to suppliers and vendors for goods or services already received but not yet […]