Revenue is the inflow of economic benefits as a result of past events. Accounting for revenue is critical in financial reporting. Our article works through the journal entries and accounting equation...

DefinitionExpenses, or operating expenditure, are payments or outflows of economic benefits from a business to pay for the day-to-day running costs incurred as a result of transactions that have...

In accounting non-current assets are tangible or intangible assets a firm will use normally over a period of greater than 12 months. This article looks into how they should be accounted for.

Inventory turnover ratio is an important metric used by investors and analysts in the their analysis of a firms financial performance. The ratio shows how many times stock is sold during a financial...

The Return on Equity (ROE) formula is a financial ratio that shows the profit generated by a company in a year compared to the shareholder funds available.It therefore shows how much profit...

In our latest article looking at key financial ratios, we look at the net profit margin, providing you with analysis and an online calculator to see how it works.Net Profit Margin is one of the...