Is provision a Long-Term Liability Is provision a Long-Term Liability: It is a liability that is recognize when there is a probable obligation or liability that may result from a past event, and the amount of the obligation can be estimate with reasonable accuracy. Provisions can be either short-term or long-term depending on the time… Read More »
Net Revenue and Gross profit Net revenue, also called net sales, refers to the total income a company generates from its operations after deducting certain items such as discounts, returns, and allowances. It represents the actual amount of money a business brings in from selling its goods or services. Formula for Net Revenue: Net Revenue=Gross Sales−Returns−Allowances−Discounts\text{Net Revenue}… Read More »
Are net sales the same as revenue In the world of finance and accounting, the terms net sales and revenue are often used interchangeably, but they represent different financial metrics. Understanding the distinction between them is crucial for analyzing a company’s financial health and performance. What is Revenue? Revenue refers to the total amount of… Read More »
Difference between income statement and profit & loss account The terms “income statement” and “profit and loss account” are often used interchangeably to refer to a financial statement that summarizes a company’s revenues and expenses during a specific period of time. However, in some contexts, there may be a subtle difference in meaning. In general,… Read More »
Difference between Total Revenue and Total Cost The distinction between total revenue and total cost lies at the heart of understanding a business’s financial performance. Here are to know each concept and explore their differences: Total Revenue Definition: Total revenue refers to the total amount of money generated from sales of goods or services over… Read More »
Difference between Revenue and Valuation Revenue and Valuation: Revenue refers to the income earned by a company through its core operations, such as the sale of goods or services, while valuation is the process of estimating the worth of a company or an asset. Visit for more information: https://www.mca.gov.in/ It is a measure of a… Read More »
The working capital cycle time formula The working capital cycle time formula, also known as the cash conversion cycles, is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash. The formula is: Working capital cycle times = Inventory days + Receivables days –… Read More »
Difference between Capital Employed and Working Capital In the world of finance and accounting, understanding key concepts such as capital employed and working capital is crucial for evaluating a business’s financial health and operational efficiency. While both terms relate to the funds used in a business, they serve different purposes and are calculated in distinct… Read More »
Working Capital vs Operating Expenses Working capital and operating expenses are two different financial concepts in accounting that represent different aspects of a company’s financial performance. For more information to visit:https://www.mca.gov.in Working-capital represents the amount of money that a company has available to cover its day-to-day operations and short-term obligations. It is a crucial metric… Read More »
Nominal Account In accounting, a nominal account is a general ledger account that is use to record revenues, expenses, gains, and losses for a specific accounting period. These accounts are also known as income statement accounts or temporary accounts. Because their balances are reset to zero at the end of each accounting period, typically a… Read More »
