Business Finance Terms, Explained Simply.

Learn more about common financial terms here.
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What is the difference between Permanent and Term Life Insurance?

Term life insurance provides coverage for a fixed period at a lower premium; permanent life insurance provides lifetime coverage and....

What is Passive Income?

Passive income is investment income earned inside a corporation, interest, rental income, and taxable capital gains, that does not qualify....

What is Profitability Analysis?

Profitability analysis examines where a business actually makes money, by product, service, customer, or channel, rather than simply confirming that....

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....

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....

What is Payroll?

Payroll is the process of calculating, remitting, and reporting employee compensation and the associated statutory deductions, CPP, EI, and income....