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Cash vs Accrual Accounting: Whats The Difference?

Cash-basis accounting is the simplest accounting method and does not require extensive accounting knowledge. Unlike accrual accounting, the cash-basis method only uses cash accounts, such as equity, income, expense, and (of course) cash. With accrual accounting, use...

Operating Expenses Opex Formula + Calculator

Thus, you can calculate the total variable cost of your business operations. This is one by multiplying the quantity of output with variable cost-per-unit of output. Your business has to pay fixed costs irrespective of any specific business activity. Both fixed and...

Deferred Revenue Explained With Examples

The balance is now $0 in the deferred revenue account until next year’s prepayment is made. Deferred revenue is common with subscription-based products or services that require prepayments. Examples of unearned revenue are rent payments received in advance,...