by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Indirect Method?The indirect method is a method used in financial reporting in which the statement of cash flows begins with the net income before it is adjusted for the cash operating activities before an ending cash balance is achieved. The indirect...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is After-Tax Profit Margin?The after-tax profit margin refers to the revenue and financial performance of a company after the net income has been divided from the net sales. The net income refers to the income left after taxes have been paid. The after-tax profit...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Current Asset?A current asset, also known as a quick asset, refers to cash or an asset that a company can convert into cash quickly. Quick assets are under a subset known as current assets, and they do not include inventory. Note that to convert inventory...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Capital Maintenance?Capital maintenance is a concept that maintains that profit can only be accounted for when there is proper maintenance of capital and when costs have been fully recovered or restored. Capital maintenance, otherwise called Capital recovery,...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Chartered Accountant?Chartered accountant (CA) is a term used as a professional designation for accountants who have met the requirements of the Institute of Chartered Accountants and have sat for and passed the exams. Accounting professionals can earn a...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Plowback Ratio?The plowback ratio is a simple metric showing the ratio of earnings retained by the company (i.e., not paid out as a dividend) to the total earnings. The formula is as follows: Plowback Ratio = 1 – Payout Ratio (Earnings Per Share /...
