Financial Accounting

This Category is dedicated to articles related to Financial Accounting.


Fixed Asset

What is Fixed Asset? Fixed asset, in accounting, is a long-term asset having lifespan > 1 financial year and value > capitalizing limit. They are typically bought to generate …

Capitalizing Assets

What is Capitalizing Assets? Capitalizing assets simply means you are carrying an asset to balance sheet. It indicates you purchased an asset, the life of which is more than …

EBITDA

Meaning of EBITDA Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) can be defined as a company’s operating profit without considering factors such as interest, taxes, depreciation, and amortization.

Operating Cash Flow

Meaning of Operating Cash Flow Operating Cash Flow (OCF) is a metric used to test the company’s cash inflow through business. It shows how well a company can produce …

Bills Payable

Meaning of Bills Payable Bills Payable (B/P) is a liability document which shows the indebtedness of an individual, an organization, a bank, etc. When an individual or an organization makes …

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 …