Consumer Goods Consumer goods, also known as final goods, are tangible or intangible products that are intended for direct use or consumption by individuals or households. These goods are purchased…
Cash Accounting Cash accounting, also known as the cash basis method, is a simple and straightforward accounting system that records financial transactions only when cash is received or disbursed. In…
Business-to-Business (B2B) Business-to-Business (B2B) encompasses commercial transactions between businesses, organizations, or institutions. These transactions typically involve the sale of products or services from one company to another, rather than to…
Business to Consumer (B2C) Business to Consumer (B2C) refers to business models in which a company directly sells its products or services to individual consumers. Unlike Business to Business (B2B)…
Business Models A business model is a conceptual framework that describes how a business creates, delivers, and captures value for its customers. It encompasses the various elements and activities that…
Earnings Before Interest and Taxes (EBIT) Earnings Before Interest and Taxes (EBIT), also known as Operating Profit, is a financial metric that measures a company’s profitability before considering interest expenses…
Consumer Price Index (CPI) The Consumer Price Index (CPI) is a measure of the average change in prices over time for a basket of goods and services that are purchased…
Cost of Goods Sold (COGS) Cost of Goods Sold (COGS) is a crucial element in financial reporting, representing the direct costs incurred in producing goods sold by a company during…
Accounting Method An accounting method is a set of rules and procedures used to record, classify, and summarize financial transactions. It provides a framework for preparing financial statements that are…
Accounting Cycle The accounting cycle is a sequential process that involves identifying, recording, classifying, summarizing, and reporting financial transactions. It begins with the recording of transactions in a journal, which…