What are Financial Statements?
Financial statements are the three core reports, the income statement, balance sheet, and cash flow statement, that together give a complete picture […]
What is Working Capital Management?
Working capital management is the active discipline of managing the timing of cash coming in and going out, to ensure the business […]
What is Working Capital?
Working capital is current assets minus current liabilities, the net short-term financial resources a business has available to fund its day-to-day operations. […]
What is Work in Progress (WIP)?
Work in progress is the value of work that has been started but not yet completed or billed, a balance sheet item […]
What is Trust Accounting?
Trust accounting is the strict segregation and tracking of client funds held in trust, a legal and regulatory requirement for lawyers, real […]
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 […]