Accounting Terms – Profit & Loss and Other Terms
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Different fields of study make use of certain terms that are not easily understood by others. If youâre an accounting student or a professional accountant, you know the different terms used in accounting. One very popular term is profit & loss.
So, do you know what the term means? To start with, you have to determine what profit means. Profit can be referred to as net earnings or net income. Businesses can either sell services or even products. Profit will come from the sales of these services and products. If the costs of running a business are controlled, it can add up to the profits.
Profits are also called ROI or return on investment. However, this term is often limited to securities like bonds or stocks. But still, some companies use ROI to mean short or long term business outcomes. Taxable income is another term for profit.
The profit & loss of a certain company is determined by finance professionals through accounting. They can determine what created the profits as well as the losses. Accountants form some sort of business equation so justify the profits & losses of a business. By doing so, they can easily tell a companyâs net worth.
It seems that by simply starting to define one accounting term, it eventually leads to defining other terms as well. Net worth is another term that is quite difficult to understand. It refers to the resulting amount after deducting the liabilities of a company from the assets. Private companies refer to net worth as ownerâs equity.
Why ownerâ€s equity? Well, after deducting all the liabilities, whatâs left basically belongs to the owner. In the case of public companies, the profit of the business is returned as dividends to shareholders. As you can see, before owner or shareholders of a company can take hold of the profits, all liabilities must be deducted first.
Every business aims to get a good and positive figure because that would mean profit to them; if not, the business is at a loss. Societies and economies are built on profit. However, there are times when a certain business incurs losses. Consumer behaviors and economic trends change. Because of this fact, it is not possible to foresee the companyâs future performance at all times.
How can you tell if a business is at a loss? That is understandable and even those who have no background in accounting know what it means. All liabilities will be deducted from the assets and if results to a negative amount, then the business is at a loss. The accounting staff of the company can still pursue effective measures to revive the business. If the business has efficient and effective accounting staffs, the business can improve in the near future.
It cannot be argued that an accounting staff is needed to ensure the companyâs success. Without them, the success of the business is not guaranteed. So the owner of the business should choose the best accounting staff. That way, all the financial transactions and decisions are noted and studied. Only then can the company gain profits.
Profit & loss is just a simple accounting term. Aside from the term, you also learned about net earnings, net income, net worth, dividends, etc.
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Why Aren’t Your Windows Clean?
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The answer to why your windows are not as clean as you would like is mostly to do with the water you use to wash them.
What’s that? You always use clean water? Let me explain...
A lot of amateur window cleaners pull up to your house and run your tap water into their buckets and get to work. Chances are you do the same whenever you want to clean the windows.
The thing is the good clean water in the tap is not as clean as you would expect. Don’t worry it’s not dangerous but here is what happens: In hard water areas your water is full of the chemicals from the water place and a lot of other dissolved minerals like calcium, magnesium and so on that are really good for drinking water but not when it comes to washing windows. In fact they are downright bad for your windows.
To give you an idea, think of what happens to your washing machine or dishwasher after a while of constant use and the efforts you go to just to make sure you do not get lime-scale problems. That is the quality of water most people use when washing their windows. Unfortunately the glass in your windows does not quite like that water. The minerals leave white residue lines on your windows and you start seeing streaks down your windows. A bucket and squeegee just does not work for this, even if the bucket of water was changed with every window (and we all know that doesn’t happen).
So, how do you get around this problem?
You just need to get a professional window cleaner with an ionised pure hot water system.
The ionised water system purifies the water by removing dissolved minerals which means no more white lines, and hopefully your windows start looking more like the windows on TV! The system works by heating the water and as we all know warm water is better for cleaning. The system then delivers the water, in a pressure controlled flow, to the ‘water-fed pole’ or whatever your cleaner uses, leaving a crystal clear finish on every surface.
There are many advantages to the ionised pure hot water system but here are some of the main advantages:
⢠Pure Hot water means a crystal clear finish. People will constantly try to walk through your glass door panel!
⢠No Chemicals – the water is pure so you don’t need bubbles
⢠It’s Green - no bubbles means no detergents, which means no environmental damage
So next time you go to find a window cleaning contractor, ask them what kind of water they use.
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Michael Smith is the owner of Jax Internet (http://www.thebestwebsitehost.info) in Glasgow Scotland specialising in website design and hosting for small businesses. Here he writes about A1 Window Cleaners Visit http://a1windowcleaners.co.uk for more on how to take care of your windows.
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How To Pick a Website Designer
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Video shows you how to pick a website designer in East Kilbride, Glasgow or anywhere at all in Scotland.
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