Ever wondered “What are advisory shares and why do I need to learn all about them?” The answer lies in the question. An advisory share is just like any other type of share except, well, that it is offered in exchange for advice! Advisory shares are often great news for companies, especially startups that are…
How can you see a snapshot of your business’ financial situation at any time? You can use a document called a balance sheet. This special report tells you about the things your business owns and what it owes to others, as well as how much value your business has for its owners. One key thing…
Equity financing might be an appealing option if you’re a small business owner searching for funding to fuel your company’s expansion. However, before delving into the intricacies of securing this form of financial backing, it’s crucial to grasp what private equity entails and how to obtain it. This comprehensive guide will demystify the world of…
Equity, often referred to as shareholders’ equity (or owners’ equity for privately held companies), denotes the sum of money that would be distributed to a company’s shareholders in the event of a complete liquidation after settling all the company’s debts. In the context of an acquisition, it signifies the value of a company’s sales minus…
In the world of finance, two terms stand out as pillars of understanding: asset and expense. People do wonder what these two terminologies mean i-e asset vs. expense. While they may seem interchangeable at first glance, delving deeper reveals the critical differences that define their role in financial reporting and decision-making. Understanding the key differences…
Understanding Return on Assets (ROA) and how to calculate individuals and businesses alike need to evaluate their financial performance and make informed decisions. ROA is a crucial financial ratio that measures the efficiency with which a company utilizes its assets to generate profits. By analyzing ROA, investors, analysts, and managers gain insights into a company’s…
In the world of business and finance, it is crucial to have a clear understanding of the various expenses associated with running a company. Among these costs, two terms frequently arise – direct costs and indirect costs. While both types impact a business’s profitability, distinguishing between them and recognizing their unique characteristics can be vital…
What is deferred revenue? Deferred revenue, also known as unearned revenue or advance payments, refers to the money that a company has received from its customers in advance for goods or services that are yet to be delivered or performed. In other words, deferred revenue represents a liability on the company’s balance sheet that reflects…
What is SG&A? SG&A stands for Selling, General, and administrative expenses. It is an accounting term that describes the costs associated with running a business that is not directly related to producing goods or services. Selling expenses are the costs of promoting and selling a company’s products or services. This includes advertising, sales commissions, trade…
What is Bonus Depreciation? As a business owner, you always seek ways to save money and maximize profits. One way to do that is by taking advantage of bonus depreciation. It is a tax incentive that allows businesses to deduct a larger percentage of the cost of qualifying assets in the year they are purchased….
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