When it comes to accounting, there are two main methods of determining a firm's financial health and profitability. One method is to calculate the firm's accounting profits, otherwise known as net ...

Accounting income is distinct from cash flows, particularly money a business has in its coffers at the end of given period such as a month or fiscal year. Various regulatory guidelines highlight these ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. David Kindness is a Certified Public ...

Many small businesses start off strong with a solid business plan, an impressive product, sufficient funding and a growing customer base. Then, somewhere along with the way, the business stalls, ...

Cash basis accounting records when cash actually changes hands in a transaction, providing a real-time view of your financial position that reflects the actual cash flow of a business or individual.

Cash flow is the lifeblood of a business. It's the stream of money coming in and going out that keeps operations running, pays bills, and helps a company to grow. For small business owners and ...

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. Suzanne is a ...

Free cash flow per share is a critical metric for assessing a company's long-term value. Understanding varying cash flow types helps clarify a company's financial activities. Investing decisions are ...