EBIT margin

The EBIT margin is a financial ratio that measures the profitability of a company calculated without taking into account the effect of interest and taxes. It is calculated by dividing EBIT (earnings before interest andRead More

Balance Sheet

Balance sheet is one of the four major financial statements of a company or entity. Balance sheet portraits an entity’s economic and financial status on a given date. It’s a summary of entity’s assets, liabilitiesRead More

payroll

Primarily, Payroll refers to “the list of all employees of an organization or company”. Nowadays it became a polysemic word. It has some other meanings too, these are: Payroll means the employees of an organization,Read More

limited audit

An audit which is limited to a particular time span (usually less than a year) or accounts or operation is known as limited audit. Scope of limited audit is less wide compared to full audit.Read More

Stockholder or Shareholder

A stockholder is an individual, company or any other entity who owns at least one or any number of share of a corporation’s capital stock. The answer is NO. Both are same. In the UnitedRead More

normal spoilage

Normal spoilage is the unavoidable part of spoilage occurs in a production process. It will occur even the production process is operated with the highest efficiency. That is why it is also known as predeterminedRead More

asset

Asset is a resource having economic value someone owns or controls with an expectation of getting future economic benefit. In business or accounting, an asset is an economic resource that an individual, a company, aRead More

accounting

Accounting is the art of serving necessary and effective financial information of economic entities through the process of recording, summarizing, analyzing and reporting transactions to concerned parties. It conveys information about the financial health ofRead More

Earnings Per Share – EPS

Earnings per share (EPS) is the part of a company’s net profit obtained by each outstanding share of common stock. Earnings per share is a financial metric, that indicates the profitability of a company. EarningsRead More

accounting infrastructure

Accounting Infrastructure is a set of systems and conventions that directs the functional accounting practice of an enterprise or a professional body under a legal framework and adopted accounting standards. A standard accounting infrastructure ensuresRead More