Balance Sheet Definition
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
The income statement details the firm’s revenue and expenses during a period of time. Also known as a ‘profit and loss statement’, it highlights how much the firm has sold and how much it has spent.
EBITDA Definition
EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortization. It is a useful financial metric which is found an a companies income statement.
Retained Earnings Definition
Table of Contents What are Retained Earnings Retained Earnings Formula Retained Earnings Explained Example of Retained Earnings Retained Earnings on Balance Sheet Retained Earnings vs Profit Limitations of Retained Earnings FAQs of Retained Earnings Retained Earnings Definition Written by Paul Boyce Posted in Finance > Financial Accounting Last Updated October 31, 2022 What are Retained
Net Income Definition
Net income (NI) is the amount of income an individual or business receives, minus any expenses. For individuals, this takes into account expenses such as tax, pension contributions, and student loan re-payments.
Net Present Value Definition
Net Present Value (NPV) is the total value of future revenues, subtracted against any cash outflows during the same period.
Present Value Definition
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.
