Author: Obotu Agape Oguche

What is the difference between gross profit vs EBIT? A company’s gross profit is not the same thing as its

What is the difference between the GAAP and IFRS statement of retained earnings? The US GAAP and IFRS are the

After carrying out a business transaction, it is recorded in a book known as the general journal. The general journal

Financial analysis is an important tool that is used by investors or managers to evaluate the financial health of a

In accounting, when an asset is eliminated from a company’s accounting records, it is said to be been disposed of.

A business may no longer be in need of an asset that it owns or probably the asset has gone

The amount that is left after a business has paid all expenses, is known as profit. There are factors that

There are several financial metrics that investors and analysts use to evaluate the financial health of a company. The profit

What is the deferred revenue journal entry? Deferred revenue is recorded in the books, under accrual accounting, when a company

In accounting, losses are recorded and shown in one of two financial reports, depending on the type of loss. The

What type of account is prepaid rent? You can make an advance payment for goods or services such as rent

Merchandise inventory is what type of account? Merchandise inventory on the balance sheet includes all goods in stock (finished goods

Is sales discount an expense? Trade discounts and sales discounts are the two main types of discounts in accounting that

Is goodwill debit or credit? Goodwill is a kind of intangible asset that may arise when a company buys another

Is notes payable asset or liability? In business, a party may purchase a piece of equipment on credit or borrow

Notes payable is what type of account? A business owner may purchase a piece of equipment on credit or borrow

Profitability indicators are a class of financial ratios that are used to assess the ability of a business to generate