Business Finance Terms, Explained Simply.
Learn more about common financial terms here.
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Financial statements are the three core reports, the income statement, balance sheet, and cash flow statement, that together give a....
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....
Percentage of completion is a revenue recognition method that records revenue and costs as a long-term project is completed over....
Payroll is the process of calculating, remitting, and reporting employee compensation and the associated statutory deductions, CPP, EI, and income....
Owner’s equity is what remains on the balance sheet after all liabilities are subtracted from all assets, the accumulated financial....