Net Income is a key line item, not only in the income statement, but in all three core financial statements. While it is arrived at through| Corporate Finance Institute
Lower of cost or market (LCM) is an inventory valuation method required for companies that follow U.S. GAAP. In the lower of cost or market| Corporate Finance Institute
A debt schedule lays out all of the debt a business has in a schedule based on its maturity and interest rate. In financial modeling, interest expense flows| Corporate Finance Institute
A leverage ratio indicates the level of debt incurred by a business entity against several other accounts in its balance sheet, income statement, or cash flow statement.| Corporate Finance Institute
The balance sheet is one of the three fundamental financial statements. The financial statements are key to both financial modeling and accounting.| Corporate Finance Institute
Inventory is a current asset account consisting of all raw materials, work-in-progress, and finished goods that a company has accumulated.| Corporate Finance Institute
SEC filings are financial statements, periodic reports, and other formal documents that public companies, broker-dealers, and insiders are required to submit| Corporate Finance Institute
Income taxes and their accounting is a key area of corporate finance. There are several objectives in accounting for income taxes and optimizing a company's valuation.| Corporate Finance Institute
Net Working Capital (NWC) is the difference between a company's current assets (net of cash) and current liabilities (net of debt) on its balance sheet.| Corporate Finance Institute
Senior Debt is money owed by a company that has first claims on the company’s cash flows. It is more secure than any other debt, such as subordinated debt| Corporate Finance Institute
If you want a career in accounting, T Accounts may be your new best friend. The T Account is a visual representation of individual accounts| Corporate Finance Institute
Public securities, or marketable securities, are investments that are openly or easily traded in a market. The securities are either equity or debt-based.| Corporate Finance Institute
Interest income is the amount paid to an entity for lending its money or letting another entity use its funds.| Corporate Finance Institute
Sales revenue is income received from sales of goods or services. In accounting, the terms “sales” and “revenue” are often used interchangeably.| Corporate Finance Institute
Earnings before tax, or pre-tax income, is the last subtotal found in the income statement before the net income line item. EBT is found| Corporate Finance Institute
The three financial statements are the income statement, the balance sheet, and the statement of cash flows. See them explained in detail.| Corporate Finance Institute
Interest expense arises out of a company that finances through debt or capital leases. Interest is found in the income statement, but can also| Corporate Finance Institute
SG&A includes all non-production expenses incurred by a company in any given period. It includes expenses such as rent, advertising, marketing| Corporate Finance Institute
Cost of Goods Sold (COGS) measures the direct cost incurred in the production of any goods or services. It includes material cost, direct| Corporate Finance Institute
A three-statement model links the income statement, balance sheet, and cash flow statement into one dynamically connected financial model.| Corporate Finance Institute