Definition:Accounting is the process of identifying and recordingbusiness eventsas well as presenting and communicating this financial information to end-users in a meaningful way. In other words, accounting is more than just recording the debits and credits of transactions. ...
What's the bottom line? If there’s one thing we’ve learned from the pandemic, it’s that things can change overnight. Having enough cash reserves to cover your normal operating expenses should revenues stop coming in isn’t only nice to have — it’s essential. For other ways to help...
While revenue is the top line on a company’s income statement, net income is often referred to as the bottom line. The difference between the amount of revenue and the amount of net income is significant. Here are some hypothetical amounts to illustrate the point: Revenue from sales of pr...
The triple bottom line (TBL) is a sustainability-focused accounting framework that includes social, environmental and financial factors as bottom-line categories. Businesses, nonprofit organizations and government entities use the TBL to evaluate not only their financial performance, but the overall econom...
When people use the phrase "the bottom line", they mean the ultimate outcome of an activity, event or project. In the business world, that's exactly what bottom line profitability means. You can make a good argument that the bottom line is the most significant number businesspersons and ...
General Accounting Office (GAO, 1991), with Brian Usilaner as project leader. A number of other studies will also be used to supplement the GAO data.doi:10.1080/10429247.1993.11414728BrianUsilanerEngineering Management JournalKinnear, L. & Sutherland, M. (2001). Money is fine, but what is ...
Financial accounting is a subdiscipline within accounting that helps organizations provide reporting related to three critical areas of a business: its assets and liabilities (balance sheet), its revenues and expenses (income statement), and its cash flo
Definition:The accrual basis of accounting is a system of recognizing revenues and expenses when they are incurred instead of focusing on when they are paid or collected. This means that both revenues and expenses are recognized and recorded in the accounting period when they occur instead of when...
Thebottom line, or net income, of a company, does not carry over from one accounting period to the next on the income statement. Accounting entries are made to close all temporary accounts, including all revenue and expense accounts, at the end of the period. Upon the closing of these acc...
When this reveals that an asset's carrying value is more than its recoverable amount, accountants write down the asset to its fair value and recognize animpairment loss. This write-down establishes a newcost basisfor the asset, which becomes the starting point for future depreciation calculations....