Accounting Articles
Clear articles on financial statements, accounting concepts, ratios, and management accounting — no paywalls, no sign-ups.
14 articles
Cost of Goods Sold (COGS) Explained: Formula, Inventory Methods, and What It Reveals
COGS is the direct cost of producing everything a business sells — learn the formula, three inventory methods, how COGS flows to gross profit, and what a rising COGS really signals.
Quick Ratio vs Current Ratio: Which Liquidity Metric Matters More?
Both ratios measure short-term liquidity — but the quick ratio strips out inventory to reveal whether liquidity is real or just stacked in unsold stock.
What Are Retained Earnings? Definition, Formula, and Why They Matter
Retained earnings show how much cumulative profit a company has kept rather than paid out — here's the formula, where to find them on the balance sheet, and what growing or negative retained earnings really signal.
What Is Amortization? Definition, Methods, and Examples
One word, two jobs — here's how businesses systematically expense intangible assets over time and how loan repayments are split into principal and interest.
Contribution Margin Explained: Formula, Ratio, and Real-World Uses
Contribution margin is the revenue left after variable costs — learn the formula, CM ratio, and how businesses use it for pricing, break-even, and product-mix decisions.
Break-Even Analysis Explained: Formula, Calculation, and Real-World Examples
Find the exact point where revenue covers all your costs — learn the formula, contribution margin, and how to use sensitivity analysis to make smarter pricing decisions.
Fixed Cost vs Variable Cost: What Every Business Owner Needs to Know
Some costs stay flat no matter how much you produce. Others scale with every unit. Understanding the difference is the foundation of break-even analysis, pricing, and profit planning.
Accounts Receivable vs Accounts Payable: What's the Difference?
Two opposite sides of the same credit transaction — here's what each means, how they sit on the balance sheet, and why DSO and DPO matter for cash flow.
What Is Depreciation? Methods, Calculation, and Financial Statement Impact
Every tangible asset you buy slowly loses value — here's how accountants record that loss systematically across all three financial statements.
What Is the Current Ratio? Formula, Calculation, and What It Means
The current ratio tells you whether a company can cover its near-term obligations — learn the formula, how to interpret the number, and the limitations analysts watch out for.
Debit vs Credit Explained: What Each One Actually Means
Every accounting entry has two sides — understanding which side is which unlocks the entire double-entry system.
Assets vs Liabilities: What Every Balance Sheet Number Means
Two sides of the same financial story — here's how to read them together, why the equation always balances, and what each number actually tells you.
Accrual vs Cash Accounting: Which Method Is Right for Your Business?
The accounting method you choose determines when income and expenses appear on your books — and the difference shapes how your finances look to lenders, investors, and the tax authority.
Income Statement vs Balance Sheet vs Cash Flow Statement: Key Differences
Three different views of one company — what each statement measures, how they connect, and why you need all three to understand business performance.