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FAQ

Domande frequenti

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What are the three main financial statements?

A chart of accounts is a list of all the financial accounts used in a company’s general ledger. It is a systematic way to organize and categorize all financial transactions.

What's the accounting equation?

Accrual basis accounting records revenues when they are earned and expenses when they are incurred, regardless of when cash is exchanged.

What is accrual basis accounting?

Accounting consulting may include a wide variety of engagements that your clients improve their financial position, the enhance their internal processes and procedures their accounting protocols.

What does "working capital" mean?

Working capital is a measure of a company’s short-term financial health. It’s calculated as Current Assets – Current Liabilities. A positive working capital means a company can pay its short-term.

What is the time value of money?

The time value of money (TVM) is a core financial concept that states a sum of money is worth more now than the same amount will be in the future. This is due to its potential earning capacity.

What is a "liquidity ratio"?

A liquidity ratio is a financial metric used to determine a company’s ability to pay its short-term obligations. These ratios, such as the current ratio or quick ratio, measure how easily a company.

What is a "pro forma financial statement"?

Accounting consulting may include a wide variety of engagements that your clients improve their financial position, the enhance their internal processes and procedures their accounting protocols.

Difference between revenue and income?

Revenue is the total money generated from a company’s primary business activities, such as sales of goods or services. Income (or net income/profit) is the company’s total earnings.