Top executive responsible for a firm's overall operations and performance. He or she is the leader of the firm, serves as the main link between the board of directors (the board) and the firm's various parts or levels, and is held solely responsible for the firm's succ...
The record of journal entries appearing in order by date. Some refer to the journal as the book of original entry, since the entries are first recorded in a journal. From the journal the entries will be posted to the designated accounts in the general ledger. With manu...
Retirement is when a person chooses to leave the workforce. The concept of full retirement – being able to permanently leave the workforce later in life – is relatively new, and for the most part only culturally...
Financial statements are written records that convey the financial activities and conditions of a business or entity and consist of four major components. Financial statements are meant to present the financial information of the entity in...
Accounts receivable refers to short-term amounts due from buyers to a seller who have purchased goods or services from the seller on credit. Credit is usually granted in order to gain sales or to respond to the granting of credit by competitors. Acco...
Working capital, also known as net working capital, is the difference between a company’s current assets, like cash, accounts receivable (customers’ unpaid bills) and inventories of raw materials and finished goods, and its c...
How to Calculate Return on Investment (ROI) for Real Estate Investments
By Marc Davis
Return on investment (ROI) is an accounting term that indicates the percentage of invested money that's recouped after the deduction of associated costs. For the non-accountant, this ma...
Cyber Monday, also known as "Black Monday," is an e-commerce term, referring to the Monday following the U.S. Thanksgiving weekend. As brick and mortar stores do with Black Friday, online retailers will usually offer special promotions...
Short Definition
When using this method of record-keeping, the business owner reports income when it is actually received and expenses when they are actually paid. This is the most commonly used method of accounting and provides the easi...
The time value of money (TVM) is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that, provided mon...
