by Small Business Accounting Software | May 31, 2026 | Terminologies
Expenses that change in direct proportion to sales or production, such as raw materials or commissions. Key for understanding contribution margins. Helps in pricing decisions.
by Small Business Accounting Software | May 28, 2026 | Assets, Chart of Accounts, Terminologies
Non-physical assets like patents, trademarks, copyrights, and goodwill. They provide future economic benefits but lack physical substance. They are amortized rather than depreciated.
by Small Business Accounting Software | May 27, 2026 | Chart of Accounts, Terminologies
Cumulative net income not distributed as dividends but reinvested in the business. It grows with profits and shrinks with losses or dividend payments. Critical for long-term financing.
by Small Business Accounting Software | May 25, 2026 | Chart of Accounts, Terminologies
Potential obligations that depend on future events, such as lawsuits or guarantees. Recorded if probable and estimable. Disclosed in notes if uncertain.
by Small Business Accounting Software | May 25, 2026 | Terminologies
A profitability ratio that shows how effectively assets generate net income. Calculated as Net Income ÷ Total Assets. Indicates efficiency in using resources.
