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...
Category: Accounting Basics
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...
Although you do not need to know accounting to use QuickBooks, FreshBooks, Xero or other accounting software, knowing the basics of how accounting works can make using software easier and provide...
When a business buys products for resale or buys raw materials to transform into products, gross profit is an important number to know. What is Gross Profit? Gross Profit is the difference...
In accounting, Cost of Merchandise Sold is an account used to track the costs associated with the purchase of products for resale in a merchandising or retail business. Cost of Merchandise Sold does...