Assets are resources that either an individual or a company uses. Someone’s personal assets may consist of their work experience or a life insurance policy, while a business’s assets include things the company can use to generate revenue, like inventory or employees. Asset Definition An asset is typically any useful thing or something that holds …
The accounting equation is a formula and principle in accounting that says a company’s assets must be equal to its liabilities and equity — otherwise, the company hasn’t recorded its transactions accurately. This equation relies on the double-entry system of accounting, where every transaction results in positive or negative changes to at least two of …
Revenue is the amount of money a company makes from selling goods or services. Companies typically report their revenue on financial statements, like income sheets, and finance professionals rely on revenue to determine a business’s profitability. For straightforward business models, companies can calculate revenue fairly easily, but the more complex the business, the harder revenue …
Understanding how to calculate profit margins is a core responsibility of accountants and many other finance professionals. Profit margins are an easy way to determine if a company is profitable (making more money than it spends) and can inform decisions like investing options and budgeting. What Is a Profit Margin? A profit margin is a …
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Most accounting interview questions include knowledge-based and technical questions designed to ensure you have the skills needed to succeed as an accountant. To get you interview-ready, we’ve gathered some common accounting questions and answers for interviews. Questions About Your Accounting Background Like most interviews, accounting interview questions start with getting to know each other. You’ll …
Essential accounting skills include strong attention to detail and an understanding of financial statements. When writing your accounting resume, skills should be a priority: you want to convey an in-depth knowledge of accounting principles and proven reliability and adaptability. But, what skills do you need for accounting resumes? Read on to find out! Must-Have Skill …
An actuary reviews data to calculate risks, typically for insurance premiums or business decisions. On the other hand, an accountant compiles and reports financial information for things like taxes, year-end statements, and budgeting. While the careers have many overlaps — both review financial data and help companies make decisions — there are significant differences between …
With so many different paths to take in accounting, it can be difficult to know which one is right for you. We’ve broken down some of the most common career paths to give you a sense of what each job in this industry looks like. >>MORE: How to Choose a Career: 6 Steps, Plus a …
Technical analysis is the practice of predicting the future using historical price and volume data. Using principles set out by Charles Dow in the late 1800s, technical analysis involves finding patterns and forecasting future prices. While that may seem confusing, it is fairly straightforward in concept. In this guide, we’ll go over: What Is Technical …
A P/E (price-to-earnings) ratio is a metric that compares a company’s share price to its annual net profits. This ratio can be used to compare companies of similar size and industry to help determine which company is a better investment. A P/E ratio is also an important metric to help determine the future profitability and …
