A manufacturing business is one that purchases raw materials and transforms the materials into products it then sells to its customers. A manufacturing business combines materials with labor and...
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A Fixed Asset is an asset purchased or manufactured by a business with the intent to use the asset for a longer period of time. The purpose of Fixed Asset is to produce income (revenue) for the...
An Income Statement is one of the major financial statements. It is also called a Profit and Loss Statement or a P&L. It shows the relationship between revenue (what a company makes for income)...
A Balance Sheet is one of the major financial statements. It shows the value of a company's assets as compared to the company's liabilities. The Balance Sheet is a snapshot of a business's financial...
In a business, Net Income is the difference between Revenue and Expenses. When the difference is positive (revenues are greater than expenses), the business has a profit or Net Income. When the...
A Chart of Accounts is a listing of the accounts a company uses to categorize transactions. The accounts are the buckets of information a business needs to track. A Chart of Accounts is specific to...