This type of argument is quite common in a naturalistic fallacy and avoiding it requires that someone first argue whether something “natural” is inherently good. Many of the issues that arise when someone utilizes a naturalistic fallacy... Read more
Bearer bonds are still legally traded in the U.S., but regulatory and law enforcement agencies keep a close eye on issuances and transfers of these instruments to curb illegal activity. To facilitate the oversight, financial institutions must adhere... Read more
If this balance sheet were from a US company, it would adhere to Generally Accepted Accounting Principles (GAAP), and the order of accounts would be reversed (most liquid to least liquid). Owners’ equity, also known as shareholders' equity, ty... Read more
Consequently, outstanding receivables are minimized, lowering the risk of bad debt and improving the financial health of the business. A buyer-initiated early payment program is managed through accounts payable with either the dynamic discounting me... Read more
This requires first subtracting the COGS from a company's net sales or its gross revenues minus returns, allowances, and discounts. This figure is then divided by net sales, to calculate the gross profit margin in percentage terms. Gross profit is a... Read more
These ratios can provide insight into the company's operational efficiency. Ideally, cash from operating income should routinely exceed net income, because a positive cash flow speaks to a company’s financial stability and ability to grow its... Read more
It’s a key metric used to determine financial health and forecast how businesses might perform in the future. For this step, take some time to fully identify all operating expenses your business incurs to ensure you’re getting the full p... Read more
We expect to offer our courses in additional languages in the future but, at this time, HBS Online can only be provided in English. Assets can be further broken down into current assets and non-current assets. An asset is anything a company owns whi... Read more
This balance sheet compares the financial position of the company as of September 2020 to the financial position of the company from the year prior. The balance sheet provides an overview of the state of a company's finances at a moment in time. It... Read more
This calculation will also be reflected on your business’s Schedule C tax document. These tools are how most small businesses manage their accounting, often supported by other important business software solutions, like a CRM or automation too... Read more
