Accounting
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Retained Earnings: Definition, Calculation & Importance
What Are Retained Earnings? Retained earnings are an important concept in accounting. The term refers to the historical profits earned by a company, minus any dividends it paid in the past. The
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Prime Cost Explained: Direct Costs in Production | [Your Brand/Company Name]
What Is a Prime Cost? Prime costs are a firms expenses directly related to the materials and labor used in production. It refers to a manufactured products costs, which are calculated to e
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Understanding Operating Costs: Definition & Key Components
What Are Operating Costs? Operating costs are associated with the maintenance and administration of a business on a day-to-day basis. Operating costs include direct costs of goods sold (COGS) a
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General Ledger: Understanding Your Company's Financial Record
What Is a General Ledger? A general ledger represents the record-keeping system for a company’s financial data, with debit and credit account records validated by a trial balance. It provides a
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Financial Assets: Definition, Types & Examples | [Your Brand/Website]
What Is a Financial Asset? A financial asset is a liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank deposits are all are
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FASB: Understanding Financial Accounting Standards in the U.S.
What Is the Financial Accounting Standards Board (FASB)? The Financial Accounting Standards Board (FASB) is an independent nonprofit organization responsible for establishing accounting and fin
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EBITDA Explained: Understanding Earnings Before Interest, Taxes, Depreciation & Amortization
What Is Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)? EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a companys overall
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Days Sales Outstanding (DSO): Definition & Calculation
What Is Days Sales Outstanding (DSO)? Days sales outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment for a sale. DSO is often determined on a
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Days Payable Outstanding (DPO): Definition & Analysis
What Is Days Payable Outstanding – DPO? Days payable outstanding (DPO) is a financial ratio that indicates the average time (in days) that a company takes to pay its bills and invoices to its t
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Debit: Understanding Accounting Debits and Credits
What Is a Debit? A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a companys balance sheet. In fundamental accounting, debits are bala
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Cost-Volume-Profit (CVP) Analysis: A Comprehensive Guide
What Is Cost-Volume-Profit (CVP) Analysis? Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that varying levels of costs and volume have
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Accounting Rate of Return (ARR): Definition & Calculation
What Is Accounting Rate of Return (ARR)? Accounting rate of return (ARR) is a formula that reflects the percentage rate of return expected on an investment, or asset, compared to the initial in
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Understanding Additional Paid-In Capital (APIC): Definition & Significance
What Is Additional Paid-In Capital (APIC)? Additional paid-in capital (APIC) is an accounting term referring to money an investor pays above and beyond the par value price of a stock. Often
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Accrued Liability: Definition, Examples & Accounting
What Is Accrued Liability? The term accrued liability refers to an expense incurred but not yet paid for by a business. These are costs for goods and services already delivered to a company for
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Net Income vs. Profit: Understanding the Key Differences
Net Income vs. Profit: An Overview Many terms in business and finance have differing or even fluid meanings in day-to-day use. Some terms the average person may use interchangeably have very sp
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Depreciation Expense vs. Accumulated Depreciation: Key Differences & Accounting
Depreciation Expense vs. Accumulated Depreciation: an Overview The basic difference between depreciation expense and accumulated depreciation lies in the fact that one appears as an expense on
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Zero-Based Budgeting (ZBB): A Comprehensive Guide
Zero-based budgeting (ZBB) is a budgeting technique that allocates funding based on efficiency and necessity rather than budget historyFiscal Year (FY)A fiscal year (FY) is a 12-month or 52-week perio
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Understanding Year-to-Date (YTD): A Comprehensive Guide
Year to Date (YTD) refers to the period from the beginning of the current year to a specified date before the year’s end. In other words, year to date is based on the number of days from the beg
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Window Dressing: Definition & Financial Statement Implications
“Window dressing” is commonly used to refer to the way a pedestrian facing the window of a retail business is presented to make their goods look most appealing. However, when it is referen
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Bookkeeping: Definition, Importance & Benefits for Businesses
Bookkeeping involves the recording, on a regular basis, of a company’s financial transactionsFinancial Accounting TheoryFinancial Accounting Theory explains the why behind accounting - the reaso
Accounting
- Sage Business Cloud Accounting vs. QuickBooks Online: Accounts Receivable Comparison
- Understanding the Accounting Cycle: A Comprehensive Guide
- Essential Methods for Recording Business Transactions
- Understanding Translation Exposure: Risks and Mitigation Strategies
- Married Filing Jointly: Understanding Tax Benefits & Requirements
- Accounting Ratios: A Beginner's Guide to Business Analysis
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Maximize Your Savings: 8 Strategies to Outperform Low Interest RatesIt’s a rough time to be saving money. Interest rates have been low for quite awhile, and despite rising some over the past few years they’ve been heading back down more recently. And ma...
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Extended Trading Hours: A Comprehensive Guide for InvestorsExtended trading (or electronic trading hours) is trading conducted by electronic networks either before or after the trading day of a stock exchange, i.e., pre-market trading or after-hours tradingAf...
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Omni Military Loans: Benefits, Requirements & Rates for Veterans & Active DutyPros Cons May receive funds quickly Must be active-duty military member or career veteran who served for at least 20 years Available to active-duty military overseas Large loan ...
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Affordable DVD Shipping: Cost-Effective Methods & TipsYou can ship a DVD without spending a lot of money. A DVD is an inexpensive way to package a lot of information. You can put family newsletters, photos or home movies on DVD and send it to di...