Terms starting with
Retained Earnings
Retained earnings represent the cumulative net profit a company keeps after distributing dividends to shareholfers. Reported under equity on the balance sheet, these funds are…
READ MORERunning costs
Running costs are recurring operational expenses necessary for keeping the business functioning day-to-day. This includes fuel, maintenance, salaries, insurance, and office supplies. Unlike capital expenses,…
READ MORERevenue expenditure
Revenue expenditure refers to costs incurred in the day-to-day running of a business, like rent, utilities, and maintenance. These are short-term expenses recorded in the…
READ MOREReturn on Investment (ROI)
ROI measures the profitability of an investment by comparing net gain to initial cost. It’s expressed as a percentage and calculated as (Net Profit ÷…
READ MOREResidual Cost
Residual cost, also called salvage value, is the estimated amount an asset will be worth at the end of its useful life. It’s used in…
READ MOREReserve
Reserves are retained portions of profits set aside for specific purposes, such as legal obligations, future investments, or contingencies. Common types include capital reserves and…
READ MOREReconciliation
Reconciliation is the process of comparing two financial records such as bank statements and the general ledger to ensure accuracy and completeness. It helps detect…
READ MORERoyalty
A royalty is a payment made by one party (licensee) to another (licensor) for the use of intellectual property, such as trademarks, patents, or copyrights.…
READ MOREReceivable
Receivables are amounts owed to a business by customers or clients for goods delivered or services provided on credit. They’re considered current assets and appear…
READ MORERevenue
Revenue is the total income a business earns from its core operations, such as selling goods or providing services. It appears at the top of…
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