What is accounting profit and how is it calculated
Accounting profit is the total revenue of a company minus the total expenses. This includes both operating expenses and non-operating expenses. Operating expenses are those that are necessary to keep the...
What is inherent risk and why should you care
In business, inherent risk is the one type of risk you can do nothing about. It's the chance an auditor will find something wrong with your financial statements, no matter how...
Are you one of those people who has always dreamed of traveling the world? If so, now is your chance to make those dreams a reality! In this blog post, we will discuss some essential tips that will help...
What is capital stock and what does it represent
Capital stock is a term used in business and economics to describe the physical or financial capital used by a company to produce goods and services. It includes things like factories,...
What is a Giffen Good
A Giffen good is a type of product for which demand increases as the price increases. This happens because the price increase causes consumers to believe that the product is getting scarcer, so they buy...
What is an Adhesion Contract
An adhesion contract is a legal agreement where one party agrees to terms that are heavily biased in favor of the other party. This type of contract is usually presented to the weaker party as...
What is positive pay and how does it work
Positive pay is a fraud prevention tool used by businesses to reduce the risk of forged or altered checks being presented for payment. With positive pay, businesses provide their bank with...
What is insurable interest
When you purchase insurance, the insurance company is taking on a risk. In order for the company to be willing to do this, you must have what is called an insurable interest in the property that...
What is a Gift of Equity
A gift of equity is a home sale in which the seller agrees to give the buyer a certain amount of money to help with the purchase price of the home. In most cases,...
What is the cash ratio and why is it important
The cash ratio is a measure of a company's ability to pay its short-term debts with its liquid assets. In other words, it indicates how much cash and cash equivalents...