What is Cash on Delivery (COD) and how does it work? Is COD cash or accounts receivable? COD is an acronym that stands for “cash on delivery.” In accounting terms, this means that payment is due at the time of delivery. COD payments are typically made in cash, but they can also be made using … Read more
Noncurrent liabilities are debts of a business that are not due within the next 12 months. A business may have many different types of noncurrent liabilities, such as bonds payable, long-term loans, and deferred tax liabilities. Noncurrent liabilities are important to consider when analyzing a company’s financial health, as they can represent a significant portion … Read more
Net 30 is a type of payment terms that indicates that a bill’s full amount is due 30 days after the date of the invoice. The “1%/10” part of the payment terms means that if the bill is paid within 10 days of the invoice date, the customer will receive a 1% discount on the … Read more
Abnormal spoilage is product that is spoiled or lost due to factors that are not within the company’s control. This can include product that is spoiled due to bad weather, power outages, or other unforeseen events. Abnormal spoilage is typically not included in the company’s inventory, as it is not something that the company can … Read more
Earnings before tax (EBT) is an accounting measure that calculates net income using the income statement’s bottom line, which includes all revenue and expenses except for income taxes. The EBT margin expresses EBT as a percentage of revenue. Income taxes can be a significant expense for many businesses, so EBT can give a more accurate … Read more
Operating earnings before depreciation, amortization, and exploration costs. What are the 4 types of profit? The 4 types of profit are: 1. Operating profit 2. Net profit 3. Gross profit 4. Pre-tax profit What is depreciation and amortization in cash flow statement? Depreciation and amortization are two methods of allocating the cost of a long-term … Read more
Accounts receivable financing is a type of business financing that allows companies to borrow against their accounts receivable, or money that is owed to them by customers. This can be a helpful way for businesses to access cash quickly, as they can typically receive funding within a few days. There are a few different ways … Read more
A tangible asset is an asset with a physical form. Tangible assets include both buildings and equipment. The main difference between a tangible asset and an intangible asset is that a tangible asset can be touched, while an intangible asset cannot. Tangible assets are important because they can be used to generate revenue and profits. … Read more
An unqualified audit is an audit that does not contain any qualifications or exceptions. This means that the financial statements being audited are free of material misstatements, and that the auditor has not found any significant problems with the company’s internal controls or accounting procedures. An unqualified audit is the highest level of assurance that … Read more
Accrued revenue is revenue that has been earned but has not yet been received. This can happen when goods or services have been provided but the customer has not yet paid. In this case, the revenue is said to be “accrued” because it has been earned, but not yet received. Accrued revenue is important to … Read more
