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The Accounting Equation, Explained

The accounting equation is a principle in accounting that says that a company’s assets must be equal to its liabilities and equity. This equation relies on the double-entry system of accounting, where every transaction results in positive or negative changes to at least two of these accounts: assets, liabilities, or equity. In this guide, we’ll …

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Accountants balancing accounts using accounting equation
What Is Revenue? Definition and Formula

Revenue shows how much a company makes from selling goods or services. Revenue, or income, is found on several financial statements and is used by finance professionals to determine profitability. For straightforward business models, calculating revenue is fairly simple. But, the more complex the business, the harder it is to determine income accurately.  In this …

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Businesswoman calculating revenue