Financial Accounting

This Category is dedicated to articles related to Financial Accounting.


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 …

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 it is a non-cash expense and does not require any current cash outflow, nonetheless it can’t be ignored in …