Minority interest

In accounting, minority interest (or non-controlling interest) is the portion of a subsidiary corporation’s stock that is not owned by the parent corporation. The magnitude of the minority interest in the subsidiary company is generally less than 50% of outstanding shares, or the corporation would generally cease to be a subsidiary of the parent. It […]

What Is Profit In Accounting Terms

In accounting terms, profit is the financial gain achieved when your business’s revenue exceeds its expenses. It’s a critical measure that reflects how well you’re managing costs and generating income from your operations. Calculating different types of profit, like gross and net, offers insights into various aspects of your financial health. By tracking profit margins, you can assess […]

What Is A Receipt In Accounting?

Image by/from National Museum of American History A receipt (also known as a packing list, packing slip, packaging slip, (delivery) docket, shipping list, delivery list, bill of parcel, manifest or customer receipt) is a document acknowledging that a person has received money or property in payment following a sale or other transfer of goods or […]

Revenue Recognition Methods In Accounting

Revenue recognition methods in accounting help you track financial performance accurately. The Cash Basis Method records income and expenses when cash changes hands, suitable for small businesses. The Accrual Basis Approach aligns income and expenses to the period they occur, enhancing analysis. Explore the Percentage-of-Completion for ongoing projects, while the Completed Contract focuses on finished ones. The Installment Sales Method lets […]

Trading statement

Image by/from RaphaelQS The trading statement is an expanded version of sales portion of the Income statement. The trading statement’s main objective is to determine sales, cost of sales and gross profit. The trading statement forms part of effective bookkeeping within the accounting discipline. Sales – Cost of Sales = Gross Profit The main parts […]