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Bookkeeping

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Profit equation explained: Types, formulas & examples

The gross profit margin compares gross profit to total revenue, reflecting the percentage of each revenue dollar that is retained…
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Public Accounting: Careers, Skills, and How to Become a CPA

Investors may be deciding to buy shares in the company, while lenders need to analyze their risk in deciding to…
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What Is a Fractional CFO? 4 Key Benefits of Hiring One

A fractional CFO cannot fully replace a full-time CFO, especially in large organizations with complex financial operations. However, for small…
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Applied Overhead: What it is, How it Works, Example

If too much overhead has been applied to jobs, it’s considered to have been overapplied. Since the applied overhead is…
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Principal: Definition in Loans, Bonds, Investments, and Transactions

During the last year of your mortgage, you’re paying off mostly principal and very little interest. By leveling out your…
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How to Calculate Net Income: Examples & Formula

For example, Incomes recognized that using a cash basis is different from incomes using an accrual basis. Different accounting policies…
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How to calculate cash flow: 7 cash flow formulas, calculations, and examples

Cash flow statements display the beginning and ending cash balances over a specific time period and points out where the…
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How to Read & Understand a Cash Flow Statement

Does the business require a lot of CapEx to keep its business up and running? Our work has been directly…