Accounts Receivables are money owed to your business by your
clients. For the most part when you sell a product you
receive payment right away. In some instances when you
sell to certain customers (such as certain types of
businesses) you will not get paid right away. These
outstanding payments become Accounts Receiveables
Accrual basis is one of the methods of accounting. It
is a method of accounting whereby income and expenses are
recognized as they are earned or incurred.
In
other words, if you sold a product this month and will not
be paid until next month you will asses the payment as
occurring this month because that is the time at which you
earned the revenue.
Also, if you have an
expense such as IT service that you incurred this month but
may not pay for it until next month, you will assess the
expense to occur this month because that is the time at
which you incurred it.
See more.
Alpha Testing
Alpha testing is done on a product or service internally by
employees or by an independent test team. The next
test that follows is Beta Testing (see
below).
Ammortization is the deduction of capital expenses for "intangible"
assets over a specific period of time. This deduction
ususally takes place over the life-span of the asset.
Intangible assets are intellectual property such as
copyrights and patents.
For example, let's say that
IBM spent $60 million dollars to develop and patent a new
computer device and the patent on the equipment last 15
years. IBM could record $4 million each year as an
ammortization expense.
Assets represents everything owned by a corporation that can
be converted to cash value. Cash is also an asset.
There are two types of assets, tangible and intangible.
Tangible assets are physical items such as buildings,
automobiles, furniture, etc. Intangible assets are non
physical items such as stocks and bonds, intellectual
property (copyright & patents), trademarks, etc.
B2B which stands for Business to Business refers to
businesses that sells to other businesses. Some
businesses sell to consumers (B2C), some sell to other
businesses while others sell to both consumers and
businesses.
The Balance Sheet is a snapshot of a company's financial
condition at a specific moment in time. It is also
referred to as the statement of financial condition.
The balance sheet list assets, liabilities and ownership
equity. Balance sheet for the current year is normally
presented alongside the balance sheet for the previous year
for comparison. The balance sheet,
along with the income statement,cash flow
statement, and state of
stockholders' equity. are the essential parts
of any company's financial statements.
Bankruptcy is a legal proceeding that an organization can
take when it can no longer repay the debit it owes to it's
creditors.
Beta Testing
Beta Testing is conducting external testing of your product
or service. This is where you release your product or
service to a limited audience outside of the organization so
that you can get realistic feedback from actual users.
Beta testing is the final testing that is conducted before
releasing the product to the public. Beta Testing is
done before Alpha Testing (see above).
Bonus is extra pay you receive above your normal pay.
It is usually given as an incentive for reaching certain
accomplishments (length of service, good performance,
achieving certain milestones, etc.).
The bottom line is the difference between sales, expenses
and taxes. It is the bottom line on the balance
sheet and shows whether or not the company is profitable.
The process of funding a stgartup through your own funding.
That means not taking investment from any other source such
as Angel Investors, Venture Capitalists, borrowing from a
bank, etc.
Accounting is the backbone of business. Ethical and
professional accounting forms a clear financial image of a
business, and allows managers to make informed decisions,
keeps investors abreast of developments in the business, and
keeps the business profitable. It is also one of the oldest
professions
Broker
A Broker is an individual that arranges transactions between
buyers and sellers in return for a commission. Brokers
specialize in a particular field of work such as Real
Estate, Import/Export, etc.
Accounting is the backbone of business. Ethical and
professional accounting forms a clear financial image of a
business, and allows managers to make informed decisions,
keeps investors abreast of developments in the business, and
keeps the business profitable. It is also one of the oldest
professions
