The total expenses are deducted from the total revenue for the period to reflect in the income statement. The financial data derived from financial statements are interpreted and analyzed for different purposes. A picture of assets and liabilities https://capitalprof.space/ is… Weiterlesen →

When a product is sold, its inventory value—the cost to produce it—is moved from Inventory to the COGS (Cost of Goods Sold) account. COGS is reported on the Income Statement and is treated like an expense by the accounting system…. Weiterlesen →

Another common sales discount is „2% 10/Net 30“ terms, which allows a 2% discount for paying within 10 days of the invoice date, or paying in 30 days. Why is it that crediting an equity account makes it go up,… Weiterlesen →

Capital refers to the money I have to invest or spend on growing my business. Commonly referred to as “working capital,” capital refers to funds that can be accessed (like cash in the bank) and don’t include assets or liabilities…. Weiterlesen →