Off-balance sheet (OBS) items are items that appear on a company’s financial statements, but which are not included in the company’s balance sheet. OBS items include things like operating leases, joint ventures, and other arrangements that may not be reflected on the balance sheet. While OBS items are not included in the balance sheet, they … Read more
A reporting currency is a currency in which a company’s financial statements are denominated. For U.S. companies, the reporting currency is almost always the U.S. dollar. However, for companies based in other countries, the reporting currency will be the currency of that country. For example, a company based in the United Kingdom would typically have … Read more
The top line on a company’s income statement is its revenue or sales. This is the figure that indicates how much money the company has brought in from its business activities during a given period. The top line is often used to refer to a company’s total revenue, but it can also refer to other … Read more
An impaired asset is an asset that has been damaged or is otherwise no longer able to generate income for its owner. This can happen for a variety of reasons, including physical damage, obsolescence, or changes in market conditions. When an asset is impaired, its owner must write down the asset’s value on their financial … Read more
What is Operating Margin, and How Do You Calculate It? What are gross and operating margins? Gross margin is the percentage of revenue that a company keeps after subtracting the cost of goods sold (COGS). Operating margin is the percentage of revenue that a company keeps after subtracting all of its operating expenses. What is … Read more
A nonrecurring charge is an accounting term used to describe a one-time expense that is not expected to recur in future periods. Nonrecurring charges are often written off as bad debt or losses on the income statement. Examples of nonrecurring charges include: -Restructuring charges -Asset impairments -Litigation charges -Goodwill write-downs Where can non-recurring items be … Read more
. What Is a Capital Asset? A capital asset is any asset that is used for generating income, either through capital gains or through the production of goods and services. Capital assets can include things like land, buildings, machines, and vehicles. What are 10 examples of assets? 1. Cash and cash equivalents 2. Accounts receivable … Read more
Net cash is the amount of cash that a company has on hand after subtracting any outstanding obligations. This figure is important because it provides insight into a company’s ability to pay its bills and fund its operations. net cash can be calculated by subtracting a company’s total liabilities from its total assets. What are … Read more
