Unearned revenueThe company still owes the customer. It records this payment as a liability on its balance sheet, not as income. This highlights why unearned revenue matters. When the company
The Weighted Average Cost of Capital (WACC) is a financial measure. It shows the average cost a company pays for its capital. This capital includes both equity (stock) and debt
Navigating the world of cryptocurrencies can be complex. One aspect that often confuses newcomers is transaction fees in crypto. These fees are a crucial part of the blockchain ecosystem. They
The Quick Ratio, or Acid-Test Ratio, is an important financial measure. The Quick Ratio Formula helps assess a company’s short-term liquidity. It measures a company’s ability to meet its immediate
This ratio provides insights into a company’s core profitability. It’s a measure of how well a business can turn revenue into profit after accounting for the costs of production. The
In finance, opportunity cost is the value of what you don’t choose. It happens when you pick one investment or action over another, often leading to an opportunity cost in
Imagine you have a small piggy bank where you put some of your pocket money. If you plan to use that money soon—maybe to buy a small toy—this is kind
Leverage in Forex trading is like using a small deposit to control a much larger trading position. Think of it like taking out a short-term loan from your broker. You
When you look at a company’s financial statements, you’ll often see a line labeled “Retained Earnings.” Understanding how to calculate retained earnings is important as this figure tells you how
Thinking about starting a new business? If you like the idea of protecting your personal assets while keeping your company’s paperwork under control, a Limited Liability Company (LLC) could be