by Small Business Accounting Software | Aug 1, 2026 | Terminologies
An indirect tax charged on goods and services at the point of sale. The business collects it on behalf of the government. Must be reported and remitted regularly.
by Small Business Accounting Software | Aug 1, 2026 | Terminologies
Financial reports of a parent company and its subsidiaries presented as one entity. Eliminates intercompany transactions to avoid double-counting. Required when control exists over subsidiaries.
by Small Business Accounting Software | Jul 29, 2026 | Terminologies
The difference between sales revenue and variable costs. It contributes toward covering fixed costs and generating profit. Used in cost-volume-profit analysis.
by Small Business Accounting Software | Jul 28, 2026 | Terminologies
The estimated value of an asset at the end of its useful life. Used in calculating depreciation. Also called salvage value.
by Small Business Accounting Software | Jul 28, 2026 | Terminologies
Requires expenses to be recorded in the same period as the revenues they help generate. This prevents mismatched reporting of costs and income. Essential for accurate net income measurement.
