What Is a Service Charge? A service charge is an additional fee covering administrative, processing, or service costs that are provided when purchasing a product or service. Typically, a service charge covers additional benefits that are linked to the principal product or service that is being purchased. Usually, the fee […]
Accounting
35 posts
Ballpark Figures – What Is a Ballpark Estimate? Ballpark figures are used to describe a rough numerical estimation or approximation of the size or value of something that is uncertain. In accounting, they are a rough but reasonable estimate of the worth of something that is otherwise unknown. Salespeople, accountants, […]
What Is Subordinated Debt? Subordinated debt is an unsecured obligation that ranks lower in terms of claims on assets or profits than more senior loans or obligations. This type of debt is also known as a subordinated debenture. It is an unsecured loan or bond that ranks lower in terms of […]
What Is a Management Buyout (MBO)? A management buyout (MBO) is a transaction in which the management team of a company buys the assets and operations from the previous owners. Sometimes, managers pool their resources. However, the buyout is frequently financed using a combination of equity and debt financing. Managers […]
Revenue Vs. Profit – Overview Revenue vs. profit – what’s the difference? Revenue is income generated through business operations while profit is net income after deducting expenses from earnings. Profit and revenue are two very important numbers to focus on for business owners and stock investors alike. Revenue is the […]
What Is Unearned Revenue? Unearned revenue is money received for a service or product that has yet to be provided or delivered by an individual or corporation. It can be viewed as a down payment on products or services that will be delivered to the buyer at a later period […]