“Payroll” refers to the process of compensating a company’s employees. The process of compensating employees is an integral part of running a company. An integral part of running a company…
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“Business entity” is a designation given to state-registered companies in the broadest sense. A company or corporation comes into existence as a business entity when it is registered and approved…
Budgeting is the systematic organization of income and expenditures over time. Budgeting is an essential part of the financial activity of governments, businesses, households, and individuals. Businesses, households, and individuals…
Notes payable are written promissory notes. Borrowers gain a specific amount of money from a lender and promise to pay it back with interest over a set period. The interest…
Assets are resources that have economic value. An asset can be owned by an individual or a corporation. A country can also own or control assets if they expect they…
An internal audit is used to determine how well a company is maintaining operational efficiency. Internal audits check how well the company manages its accounting processes. They also help assess…
Standard costing is an accounting concept used to determine a standard for the cost of each element. It is a predetermined amount (a standard) for the costs of direct materials,…
Net profit margin is the percentage of revenue remaining after all expenses have been deducted from sales. The net profit is a measurement that reveals how much profit a business…
The meaning of liquidity can vary slightly depending on the context in which it is used. However, it always has to do with how fast and how easily security or…
The term “dividend” refers to payment made by companies to shareholders. Payments made by companies to shareholders are taken from the profits earned by companies in the course of their…
