Category: Financial Accounting

Notes Payable

Definition of Notes Payable When a company issues promissory notes, it maintains the records of the amount of promissory notes issued in a ledger account. Such account is termed …

Net Operating Income

Companies raise debt and equity capital to buy operating and non-operating assets which are expected to generate revenue going forward. The activities related to the utilization of these operating …

Net Profit

Net Profit is a measure of profitability of the company after taking into consideration all costs incurred during an accounting period. Net profit is also referred to as net …

Depreciation

Depreciation is a very important and real operating expense. Although depreciation is a non-cash expense and does not require any current cash outflow, nonetheless it can’t be ignored in …

Fund Flow Statement

Fund flow statement is a statement that reflects the relative position of funds of the company over a two-period horizon and enables analysis of sources and uses of funds …