Business

The accounting rate of return, often called the ARR, is a way to determine whether spending money on a project or investment is a good idea. It looks at how much profit the project might make compared to its cost. The project is probably worth doing if the ARR percentage is high enough. How the…

Profit is one of the most essential things in business. When a company makes more money than it spends, it is called profit. Profit is what keeps a business going and growing. Without profit, a business would not be able to pay its bills, its workers, or its owners. Why Profit Matters Making a profit…

A stakeholder is any individual, group, or party interested in a company and can affect or be affected by the business. The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers. However, the concept has been extended to include communities, governments, and trade associations. Stakeholders are bound to a company by…

An accounting period is the period covered by a set of financial statements. Companies use account periods to report their financial performance and position regularly. This allows the company, investors, regulators, and other stakeholders to analyze the business’s economic health and track changes over time. Common Account Periods The most common account periods are monthly,…

Business investors are people or organizations investing money in a business expecting to return more later. They give businesses the money to start, grow, or keep running. Through their investment, these investors become part owners of the company, which means they share in profits and losses. The Basic Role of Investors Investors do much more…

Financial statements are documents that show a business‘s economic activities and position. They help owners, investors, and other interested people understand how well a company manages its money. Public companies must create these statements regularly to comply with the law and keep their stakeholders informed. Main Types of Financial Statements Balance Sheet The balance sheet…

In business, assets and liabilities are two significant things. They are found on a company‘s balance sheet. The balance sheet is a financial statement that shows what a company owns and owes at a specific time. Assets are things of value that a business owns. Liabilities are amounts of money that a company owes to…

The accounting equation stands as the foundation of all accounting practices. It shows how a business organizes and tracks its money and resources. This simple but powerful formula states that Assets = Liabilities + Owner‘s Equity. Every financial transaction a business makes must balance this equation, like two sides of a scale. Understanding Assets Assets…

The whole point of collecting corporate intelligence is to give companies a leg up on their rivals. When you’ve got the inside scoop at the perfect moment, you can jump on opportunities, dodge risks, and keep your strategy on point. That’s how you boost profits, gobble up market share, and set yourself up for long-term…

The accounting cycle is a series of steps businesses follow to keep their financial records accurate and current. It helps companies track their economic activities, prepare critical financial statements, and record all transactions correctly. Understanding the accounting cycle is essential for anyone involved in managing a business’s finances, whether you are an accountant, a business…