What is a Bank Teller? Most understand what a bank teller is and the job that the person does. A bank teller handles the day-to-day financial transactions for customers. They may include money transfers, money orders, deposits and withdrawals, and checking transactions. A bank teller must demonstrate a well-rounded understanding of the bank he or…
What is a Balance Sheet? A balance sheet provides a snapshot of what a company owns (assets), what it owes (liabilities), and the value left for the owners (shareholders’ equity). Also called a statement of financial position, the balance sheet is structured around the accounting equation: Assets = Liabilities + Equity Assets: What the business…
What are Retained Earnings? Retained Earnings (RE) are the accumulated portion of a business’s profits that are not distributed as dividends to shareholders but instead are reserved for reinvestment back into the business. Normally, these funds are used for working capital and fixed asset purchases (capital expenditures) or allotted for paying off debt obligations. Retained…
What is the Income Statement? The Income Statement is one of a company’s core financial statements that shows their profit and loss over a period of time. It summarizes all revenues and expenses from both operating and non-operating activities to show the company’s profit or loss for the period. In both corporate finance (including financial…
What is the Profit and Loss Statement (P&L)? A profit and loss statement (P&L), or income statement or statement of operations, is a financial report that provides a summary of a company’s revenues, expenses, and profits/losses over a given period of time. The P&L statement shows a company’s ability to generate sales, manage expenses, and create…
What is Gross Annual Income? Annual income is the total value of income earned during a fiscal year. Gross annual income refers to all earnings before any deductions are made, and net annual income refers to the amount that remains after all deductions are made. The concept applies to both individuals and businesses in preparing…
What is Straight Line Depreciation? With the straight line depreciation method, the value of an asset is reduced uniformly over each period until it reaches its salvage value. Straight line depreciation is the most commonly used and straightforward depreciation method for allocating the cost of a capital asset. It is calculated by simply dividing the cost of…
What is the Fortune 500? The Fortune 500 is an annual list of the top 500 United States companies by total revenues – public and private included. The Fortune 500 list is compiled and published annually every spring by Fortune Magazine, which is based in New York City. Edgar Smith, a Fortune editor, created the…
