Return 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 ÷ Investment Cost) × 100. ROI is used to evaluate business performance, prioritise projects, and assess the effectiveness of marketing or capital expenditures.
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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…
Retained Earnings
Retained earnings represent the cumulative net profit a company keeps after distributing dividends to shareholfers. Reported under equity on the…
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