Balance Sheet: Definition, Format & Example
The balance sheet is a key financial statement that public and private companies report on. It highlights a firm’s assets, liabilities, and equity.
Financial Accounting
Financial accounting refers to the process by which incoming and outgoing cash flows are recorded. These are typically summarized through three key statements: the income statement, the balance sheet, and the cash flow statement.
Income Statement: Definition, Format & Example
The income statement details the firm’s revenue and expenses during a period of time.
EBITDA: Definition, Pros, Cons & Example
EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortization.
Retained Earnings: Definition, Formula & Example
Retained earnings are the amount that a firm keeps after it has distributed dividends to shareholders.
Net Income: Definition, Formula & Example
Net income (NI) is the amount of income an individual or business receives, minus any expenses.
Net Present Value: Definition, Formula & Example
Net Present Value (NPV) is the total value of future revenues, subtracted against any cash outflows during the same period.
Present Value: Definition, Criticisms & Example
Present value (PV) is the current value of a future sum of money, or stream of revenue. Tihs is calculated by using the discount rate.
