Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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The Capital Dividend Account is a notional CRA ledger that tracks amounts a private corporation can distribute to Canadian shareholders....
Capital Cost Allowance is the CRA’s system for deducting the cost of business assets over time, the tax equivalent of....
An arm’s length transaction is a deal between unrelated parties acting independently in their own interests, the standard the CRA....
Adjusted cost base is the CRA’s measure of what was paid for a capital property, including acquisition costs and improvements,....
Working capital management is the active discipline of managing the timing of cash coming in and going out, to ensure....
Working capital is current assets minus current liabilities, the net short-term financial resources a business has available to fund its....
Work in progress is the value of work that has been started but not yet completed or billed, a balance....
Trust accounting is the strict segregation and tracking of client funds held in trust, a legal and regulatory requirement for....
Revenue recognition is the accounting principle that determines when a sale is officially recorded, not when the invoice is sent....
Retained earnings is the cumulative profit kept in the business since incorporation; cash is what is actually in the bank,....
Profitability analysis examines where a business actually makes money, by product, service, customer, or channel, rather than simply confirming that....
Profit is an accounting measure of what was earned after expenses; cash flow is what actually moved through the bank....