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 often reinvested in the business for expansion, debt repayment, or reserves. It is a key indicator of a company’s reinvestment strategy and financial strength.
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Reverse Entry
A reverse entry is made at the beginning of a new accounting period to cancel out an adjusting journal entry…
Revenue Recognition
Revenue recognition is the accounting principle that determines when income should be recorded. Under accrual accounting, revenue is recognised when…
Running costs
Running costs are recurring operational expenses necessary for keeping the business functioning day-to-day. This includes fuel, maintenance, salaries, insurance, and…
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