Financial Analysis

What's it: A deferred tax asset represents an inflow of future tax-related economic benefits. It eventually returns to business in the form of tax relief, reducing future taxable income. For example, a company pays taxes early before they are

What's it: An investment property is a company's long-term investment in the property sector to obtain a rental income or capital appreciation. It can be an investment in the land and buildings. The company recognizes it as an asset if there are

What's it: A cash equivalent is a financial asset that can easily be converted to cash and have minimal risk of changing prices. Because of this nature, companies combine cash accounts with cash equivalents into one: cash and cash equivalents.

What's it: Cash is money in the form of banknotes or coins. In accounting, other examples of cash are checks, notes, and demand deposits. Cash is the most liquid asset and vital to the liquidity of the company. Companies can use them

What it is: Noncurrent liabilities represent liabilities which due more than one year or one operating cycle. Together with current liabilities, they make total liabilities in the balance sheet. Other names for noncurrent liabilities are

What it is: Noncurrent assets are long-term assets, in which the full value will not be realized during the accounting period. They represent illiquid assets. Examples are property, plant, and equipment (PP&E). Another term for noncurrent

What's it: Shareholder equity is money that can be associated with a company's owner or shareholder. It is a residual claim on company assets after deducting liabilities. Although there are several accounts in it, the two most significant are

Net revenue is gross revenue after adjusted for deductions. When selling a product, your company records it as gross revenue. To get it, you need to reduce it by factors such as: Discounts, i.e., the value or percentage of the deduction on the