What does net profit mean?Net Profit:When your business makes money, it is recorded as revenue. This is very helpful for knowing what amount you can make from different sources, but it doesn't tell you how much you get to keep. You have to spend money to make money, so that means ...
Does Economic Profit Beat Earnings? Evidence from Brazil.The purpose of this paper is to analyze if the Economic Profit (EP) better explains the Brazilian companies' market value than the Net Operating Profit After Taxes (NOPAT) or Net Income (NI). Therefore, it contributes to the debate on...
Owning shares in a company gives you the right to your part of the company's earnings and everything it owns. The more shares you own, the bigger the part of profits you're entitled to. When a company starts up, owners must choose an amount of stocks to authorize. This is the total...
How do you close net income into retained earnings? What does gross margin ratio mean? What is the difference between economic profit and accounting profit? Explain clearly with a quantitative example. If sales are $820,000, variable costs are 45% of sales, and operating income is $260,000...
What do they mean when they say income? Income, ornet income, is a company's total earnings or profit. When investors and analysts speak of a company's income, they're actually referring to net income or the profit for the company. ...
Type 1: YTD earnings Year to Date earningsrefer to the cumulative income or earnings of an individual or entity from the beginning of the calendar year up to the present date. It represents the total amount of money earned within that period, encompassing all sources of income. ...
What does it mean when there's no inventory on the balance sheet? Is the term "earnings and profit" well defined in the internal revenue code? Explain. How might a company determine enterprise value? Define the following term: Accounting. ...
The entire purpose of tax deductibles is to provide financial relief by lowering taxable income. By subtracting eligible expenses from their income, taxpayers can effectively retain more of their earnings. This had the added benefit of stimulating theeconomy, as the taxpayer now has greater disposable...
Personal financial planning generally involves analyzing an individual’s or a family’s current financial position, predicting short- and long-term needs, and executing a plan to fulfill those needs within individual financial constraints. Personal finance depends largely on one’searnings, living requi...
If prices increase, so does thecost of living. If people spend more money to live, they have less money to satisfy their obligations, assuming their earnings haven't increased. With rising prices and no increase in wages, people experience a decrease in purchasing power. As a result, the ...