by Small Business Accounting Software | Jan 12, 2026 | Terminologies
The expected period an asset will be productive for business purposes. Used to determine depreciation schedules. Can differ from physical life due to obsolescence.
by Small Business Accounting Software | Jan 11, 2026 | Terminologies
Net income attributable to each outstanding share of common stock. EPS is widely followed by investors. Higher EPS signals stronger profitability.
by Small Business Accounting Software | Jan 9, 2026 | Chart of Accounts, Terminologies
A category for uncommon obligations not classified elsewhere, such as deferred compensation or contingent liabilities. Used sparingly. Helps avoid clutter in reporting.
by Small Business Accounting Software | Jan 9, 2026 | Chart of Accounts, Expenses, Terminologies
Represents taxes on net income owed to the government. Calculated based on taxable income, not accounting profit. A standard line item on income statements.
by Small Business Accounting Software | Jan 9, 2026 | Terminologies
Also called the Profit and Loss Statement, it summarizes revenues, expenses, and net income over a period. It shows how profitable the business was during that time. Investors and managers use it to assess performance.
by Small Business Accounting Software | Jan 7, 2026 | Chart of Accounts, Terminologies
Taxes accrued but not yet payable due to timing differences between accounting and tax reporting. Often arises from depreciation methods. Recognized as future obligations.
