Companies purchase products from different sources, which requires using various transportation channels. One of these includes FOB destination. What is FOB Destination? FOB (free on board or freight on board) destination signifies a shipping agreement wherein the seller assumes the responsibility and cost of delivering goods to a specific destination. …

In the business world, the term “Conglomerate Merger” has been making headlines recently – it’s a significant event where two big companies decide to join forces. These mergers have a massive impact on the economy, industries, and consumers. They often shake up the market, influencing competition and changing how businesses …

Companies sell products to increase revenues. However, some transactions may also decrease them while not directly stated on the income statement. The accounts for these transactions are contra-revenue accounts. What is Contra Revenue? Contra revenue serves as a mechanism in accounting to accurately portray a company’s net revenue by subtracting …

Quick Assets play a key role in keeping things running smoothly for individuals and businesses alike. These assets are like instant helpers in times of financial need, readily available to cover sudden expenses or seize unexpected opportunities. Understanding what Quick Assets are and how they function can make a big …

Nonprofits must follow a reporting structure that differs from other businesses and companies. The primary difference comes from the reports. The financial statements for nonprofits include the statement of financial position, statement of activities, statement of cash flows, statement of cash flows, and notes to financial statements. What are Financial …

When it comes to running a successful business, growing the company is very important – one way to do this is by using growth equity. By understanding how growth equity works and how to use it, businesses can make better decisions and achieve their goals faster. As the name suggests, …

Companies often encounter situations where they have to choose one of several options. When considering these, they must look at various aspects. Usually, companies use relevant costs to determine the best choice among those. What is Relevant Cost? Relevant cost, within managerial accounting, encompasses future-oriented expenses and incomes crucial for …

Understanding financial health is crucial for any business. A crucial player in this game is the Interest Coverage Ratio, a handy tool that gives owners insights into a company’s knack for handling its debts. This ratio can serve as a compass, helping businesses bring financial stability. It offers insights that …

Vendors are parties that provide products or services to a company and get compensation in exchange. Companies may have various vendors. In financial accounting, companies do not report each supplier separately. In some countries, however, companies must disclose certain vendors. One example of this is the 1099 vendor requirement by …

When it comes to marketing, metrics and measures play a crucial role. ROAS, or Return on Ad Spend, stands out as an essential tool. It’s not just about numbers or percentages, it’s about understanding the profitability of advertising efforts. This measure can shine a light on the ad campaigns, guiding …