Author: John

Revenue Streams: Definition, Types, Examples, Importance

Every business or organization needs to generate revenue to survive and grow. Revenue streams are the heart and soul of a business, as they bring in the money necessary to keep things going. There are several different types of revenue streams, each with its advantages and disadvantages. In this article, …

Volatility and Risk: What’s the Relationship?

Volatility and risk are two terms that are often used interchangeably, but there is a distinction between the two. In this blog post, we will explore the relationship between volatility and risk, and discuss why it is important for investors to understand both concepts. Volatility is a measure of how …

Average Total Assets: What is, Formula, Calculation, Meaning

Assets are resources owned or controlled by companies and used in operations to generate revenues. They are a part of the balance sheet and appear as a separate section. Since assets are crucial in running a business, they also contribute to various financial metrics. However, they may not be a …

How Much Does a Business Valuation Service Cost?

If you’re thinking about selling your business or just want to know what it’s worth, you’ll need to get a business valuation. This can be done by a number of different professionals, including accountants, appraisers, and business brokers. So how much does a business valuation service cost? And what factors …

Clearing House: Definition, Functions, Importance, Example

Whenever we go to the market to buy or sell something, there is always an entity that brings the buyer and the seller together and completes the transaction between them. This entity is called a clearing house. In the financial market, these types of organizations are very important because they …

Reasonable Assurance in Audit

Audit engagements involve auditors providing their opinion on a subject matter. This audit opinion comes in the form of an audit report. Essentially, it includes the conclusion auditors reach after collecting audit evidence during their work. This conclusion states whether the subject matter is free from material misstatement. However, auditors …

How Business Valuation Works

Do you own a business? If so, you will want to know how business valuation works. This is the process of determining the worth of a company. The value of a business can be affected by many different factors, including income, assets, and liabilities. In this guide, we will walk …

Economies of Scale: Definition, Examples, Types, Meaning

In business, economies of scale refer to a phenomenon where unit costs decrease as the size of production increases. This occurs because fixed costs are spread out over more units of output and because larger-scale production allows for the realization of certain cost advantages (such as discounts from suppliers or …

What is Business Valuation and Why is it Important?

When you are thinking about selling your business, one of the most important factors that you will need to consider is its value. This is what is called business valuation. There are a number of reasons why this number is so important. In this blog post, we will discuss what …

Shareholder’s Equity vs Retained Earnings

Shareholder’s equity is a part of the balance sheet. It represents the equity portion of the accounting equation presented in the financial statement. In most cases, it includes prevalent items such as ordinary stock, retained earnings, and other reserves. Some people may wonder how shareholder’s equity is different from retained …