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Occasionally a small business owner, when asked about how much equity they have in their company, responds with their bank account balance. But this is not equity. As an owner of a business, it is good to know your total equity in your company and how it is calculated. Your equity …
An S-Corporation sometimes causes confusion as to whether it actually qualifies as a traditionally identified business entity. A person could split hairs arguing both sides, but what is important to recognize is that a business registers with their state as their chosen …
In simplest terms, the P/E ratio is a way to value a company by comparing the price of its stock to its earnings. This is done by taking the price of a share of stock and dividing by the earnings …
As a business owner, you are probably aware that there are two main accounting systems: Cash Basis Accounting and Accrual Accounting. However, understanding the differences between them, including their advantages and disadvantages, is not so simple. The primary difference between …
The Profit and Loss (or Income) Statement is one of three financial statements every public company issues quarterly and annually (the other two are the balance sheet and the cash flow statement). Of the three, it is often the most …
If you needed to make a quick assessment of a small business’s health, but could only ask a few questions. What would you ask? Everyone will approach this differently based on their own experience. Two potential questions are -“How much …