Break-Even Analysis: Definition and How to Calculate and Use It

Stock and option traders need break-even analysis to facilitate several functions. Firstly, they use break-even analysis to help them figure out at which point their stock and option positions become profitable. Also, break-even analysis help stock and option traders manage their risks. Through knowing their break-even value, stock and option traders can set stop […]

What Is an Expense Account? Definition, Purpose, & Subaccount List

Operating expenses, operating expenditures, or “opex,” refers to the costs incurred by a business for its operational activities. In other words, operating expenses are the costs that a company must make to perform its operational activities. An expense account refers to funds paid to an employee, which are then used for travel and entertainment expenditures. […]

A Guide to Bookkeeping: Skills, Salaries, and Careers

Once you become a qualified bookkeeper, you can work as a permanent employee or freelancer. Every business step requires capital, from transforming an idea into a model to investing in its expansion. As a professional bookkeeper, you would keep track of a company’s financial transactions and record them in the general ledger accounts. Your job […]

What It Means to Be in Arrears, With Example

Customers can hesitate to pay large bills for service in advance, so typically a business charges a percent upfront or requests a down payment. After the service is finished and both parties are satisfied, the customer pays the remaining balance. Because the customer is paying after the service has finished, this is also considered in […]

Shareholder vs Stakeholder: What Is the Difference?

Shareholders have the power to impact management decisions and strategic policies. However, shareholders are often most concerned with short-term actions that affect stock prices. Stakeholders are often more invested in the long-term impacts and success of a company. If the company performs well, stockholders profit from it as they receive dividends. If the company is […]

Sum of Years Depreciation SYD How to Calculate

Balances depreciation with other costs like maintenance, avoiding calculation issues. The articles and research support materials available on this site are educational and are not intended to be investment or tax advice. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. This results in a […]