Finance Basics & Concepts

Introduction In the intricate realm of business operations, understanding the concept of Variable Cost is paramount to achieving sustainable success. As you delve into the world of enterprise...

Introduction to prepaid expenses Prepaid expenses are expenditures made in advance for goods or services your organization will receive or consume in the future. Doesn’t it seem like...

Introduction to Liquidity Ratios In the world of finance, liquidity ratios play a crucial role in evaluating a company's short-term financial health and stability. These ratios provide valuable...

Introduction Managing finances effectively is essential for individuals and large and small businesses alike. A crucial aspect of financial management is understanding assets and liabilities, the two fundamental...

Introduction to fixed assets Fixed assets are tangible or physical assets that a company owns and uses for its business operations, with the expectation of deriving benefits from...

Introduction “Constantly take inventory of what's important to you.” – Dave Chappelle Effective inventory management is crucial for enterprises to stock suitable raw materials and meet market demands....

Introduction to payroll expense Payroll, the one word with two syllables, is an intrinsic part of any business. Simply put, Payroll = pay the roll  (list of employees)...

Introduction to explicit cost Explicit cost or explicit expense refers to a tangible and quantifiable expenditure resulting in a cash outflow from a company's financial records. It helps...

Introduction A prime cost is directly incurred when an enterprise produces a good or service. Organizations can use these expenses to calculate the contribution margin. It helps determine...

Introduction A provision is a sum of money set aside by a company to pay for potential expenses or liabilities. Savings and provisions in accounting have distinct meanings....