Accounting
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Triple Bottom Line (TBL): Understanding Social & Environmental Responsibility
What Is the Triple Bottom Line (TBL)? In economics, the triple bottom line (TBL) maintains that companies should commit to focusing as much on social and environmental concerns as they do on pr
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Sarbanes-Oxley Act (SOX): Protecting Investors & Corporate Governance
What Is the Sarbanes-Oxley (SOX) Act of 2002? The Sarbanes-Oxley Act of 2002 is a law the U.S. Congress passed on July 30 of that year to help protect investors from fraudulent financial report
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Understanding Royalties: Definition, Types & How They Work
What Is a Royalty? A royalty is a legally binding payment made to an individual or company for the ongoing use of their assets, including copyrighted works, franchises, and natural resources. A
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Per Capita: Understanding Average Values Per Person | [Your Brand/Website Name]
What Is Per Capita? Per capita is a Latin term that translates to "by head." Per capita means the average per person and is often used in place of "per person" in statistical ob
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Just-in-Time (JIT) Inventory: A Comprehensive Guide
What Is Just-in-Time (JIT)? The just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules. Companies employ
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Understanding Invoices: A Comprehensive Guide for Buyers & Sellers
What Is an Invoice? An invoice is a time-stamped commercial document that itemizes and records a transaction between a buyer and a seller. If goods or services were purchased on credit, the inv
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FF&E Explained: Understanding Furniture, Fixtures & Equipment
What Is Furniture, Fixtures, and Equipment (FF&E)? Furniture, fixtures, and equipment (abbreviated as FF&E or FFE) refers to movable furniture, fixtures, or other equipment that have no
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Factors of Production: Definition, Types & Importance
What Are Factors of Production? Factors of production are the inputs needed for the creation of a good or service. The factors of production include land, labor, entrepreneurship, and capital.
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Economic Order Quantity (EOQ): Minimize Inventory Costs
What Is Economic Order Quantity (EOQ)? Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and
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Equivalent Annual Cost (EAC): Definition & Calculation
What Is the Equivalent Annual Cost (EAC)? Equivalent annual cost (EAC) is the annual cost of owning, operating, and maintaining an asset over its entire life. Firms often use EAC for capital bu
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Depletion Accounting: Understanding Resource Cost Allocation
What is Depletion? Depletion is an accrual accounting technique used to allocate the cost of extracting natural resources such as timber, minerals, and oil from the earth. Li
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Understanding the Certified Public Accountant (CPA) Designation
What Is a Certified Public Accountant (CPA)? A certified public accountant (CPA) is a designation provided to licensed accounting professionals. The CPA license is provided by the Board of Acco
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Contribution Margin: Definition, Calculation & Importance
What Is the Contribution Margin? The contribution margin can be stated on a gross or per-unit basis. It represents the incremental money generated for each product/unit sold after deducting the
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Cash on Delivery (COD): Understanding Payment Options & Benefits
What Is Cash on Delivery (COD)? Cash on delivery (COD) is a type of transaction where the recipient pays for a good at the time of delivery rather than using credit. The terms and accepted form
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Bill of Lading: Understanding Shipping Documents & Legal Significance
What Is a Bill of Lading? A bill of lading (BL or BoL) is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. A bill o
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Revenue vs. Income: Understanding the Key Differences
Revenue vs. Income: An Overview Revenue is the total amount of income generated by the sale of goods or services related to the companys primary operations. Revenue, also known as gross sa
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Gross vs. Net Revenue: Understanding the Difference for Business
Gross Revenue vs. Net Revenue Reporting: An Overview Recognizing and reporting revenue are critical and complex problems for accountants. Many investors also report their income, and the differ
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Marginal Revenue vs. Total Revenue: Understanding the Difference
Revenue is how much money a business brings in by selling its goods or services at a certain price. Revenue is the starting point of a companys income statement that will determine how much net inco
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Accrued Expenses vs. Accounts Payable: Key Differences Explained
Accrued Expenses vs. Accounts Payable: An Overview Companies must account for expenses they have incurred in the past, or which will come due in the future. Accrual accounting is a method of tr
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Variable Costs Explained: Definition, Examples & Impact
What Is a Variable Cost? A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company
Accounting
- Essential Accounting Basics for Small Businesses: A Guide to Financial Health
- Understanding Temporary Accounts in Accounting: A Comprehensive Guide
- General Ledger (GL): Definition, Function & Importance
- Operating Margin: Definition, Calculation & Importance
- Understanding Accounts Expenses: A Comprehensive Guide
- Master 3-Statement Financial Modeling: A Comprehensive Course
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Top Performing Cryptocurrencies in October: 5 Biggest GainsMany or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opi...
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Estate Planning & Debt: What Happens to Your Debts After Death?div.cust...
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How Much to Save Monthly: A Comprehensive GuideYou’ve worked hard to reach the point where you can finally start contributing to your nest egg. But, how much should you save each month? There are several rules of thumb, such as the 50/30/20 or...
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Secure Cryptocurrency Exchanges: A Guide to Profitable InvestingThe value of cryptocurrency is skyrocketing globally. However, the cryptocurrency industry is not very securely regulated. Many cryptocurrency exchanges are sprouting rapidly all across the world. ...