by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Gross Margin?Gross margin is the difference between a company’s net revenue in sales and cost of goods sold (COGS). Mathematically, gross margin can be represented as, GrossMargin = NetSales Revenue COGS. In simple terms, the gross margin is an...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Gross Profit?The gross profit of a business, variously referred to as its sales profit or gross income, is the total profit that it makes from sales after deducting the costs associated with producing and selling its products or delivering its services. In...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is an Annual Report?An annual report is a publication which corporations are required to provide yearly to shareholders to explain their financial conditions and operations. An annual report doesn’t have to be bulky in size; five pages will do. The first...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Variable Cost?A variable cost is an expense that varies in accordance with the level of output. Such costs tend to go up or down as per the production activities of a company. Variable costs will increase in case the production increases and decrease in case...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the American Institute of Certified Public Accountants?Founded in 1887, the American Institute of Certified Public Accountants (AICPA) is the non-profit organization of certified public accountants in the country. Initially, called the American Association of...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Operating Cash Flow Ratio?The operating cash flow ratio, also known as the Cash Ratio or Cash Flow Ratio, ascertains if the cash flows obtained from the operations of a firm are adequate to cover the current liabilities. Operating cash flow ratio= Operating...
