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 […]
What is an Income Statement?
The income statement shows revenue, costs, and expenses over a specific period and produces a net profit or loss figure that indicates […]
What is Holdback?
A holdback is a portion of each progress payment withheld by the client until a defined period after project completion, a legal […]
What is the difference between Gross and Net Profit?
Gross profit is revenue minus the cost of delivering a product or service; net profit is what remains after all operating expenses, […]