The income statement is a financial statement that reports a company’s financial position performance over an accounting period. This statement primarily fo...

In the beginning periods of a new company, the company has many more expenses than revenues (if any revenue at all), and therefore records a loss every peri...

A chart of accounts is a listing of a company’s expense buckets (eg. travel, insurance, rent, payroll, etc.). Diving deeper, it’s a table that breaks down a...

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Similar to net inco...

Cost of Goods Manufactured (COGM) is the amount of money it costs a company to manufacture its product. Generally included in the calculation is the cost of...

Gross profit is the term for the money a company makes from its main operation (generally, sales) after deducting the cost of that operation (making and sel...

ROI (Return on Investment) is a measure of the amount of money an investor gets from a particular investment. This not only applies to your company...

The average cost method is a method of approximating the cost of goods that a company sold from its inventory. It can be difficult for a company to know the...

A balance sheet is a snapshot showing the company’s finances at a moment in time. The balance sheet is made up of: assets (things the business owns), liabil...

The income statement is a financial statement that reports a company’s financial position performance over an accounting period. This statement primarily fo...