Salary slips are documents issued monthly by employers to their employees. They contain a detailed breakdown of employee salary and deductions for a given period. The document can be a…
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Definition: Inventory is a business and accounting term that refers to raw materials, merchandise, and goods available for sale. It represents one of the most important assets for a business…
Accounting plays an integral role in any business. When most people think of a business accountant, they think of tax records and preparing tax returns. But accounting plays a much…
Petty cash is money that is kept on hand for a business. It is used to pay for smaller, incidental expenses like employee reimbursements or office supplies. Monies that go…
The general ledger keeps the record of all a company’s financial transactions. Accountants enter each transaction into the general ledger. These transactions are organized into assets, liabilities, revenue, expenses, and…
A balance sheet is a financial statement used by a company to report its assets, liabilities, and shareholder equity at any specific time. Investors use balance sheets to compute the…
Assets are things that hold value or a resource of value that can be converted into cash later on. Individuals, companies and governments hold assets. Assets generate revenue for companies,…
What is the cost of goods sold and why is this important to know? The cost of goods sold is also referred to as the cost of sales and is…
The contribution margin is part of the break-even analysis and is used in the overall cost and sale price planning for products. The contribution margin is the selling price per…
An income statement is one of the three important financial statements that companies use to report their financial performance. The reporting occurs over a specific accounting period, and the other…
