Operating Income Formula
What is Operating Income? Operating income is called as Earnings Before Interest & taxes (EBIT) or operating profit. It is the revenue left after subtracting operational direct and indirect expenses from …
Accounting
Purchase Price Allocation (PPA)
Purchase Price Allocation The most memorable moment in any M&A transaction is often when the deal is signed to buy or sell the company. It is just one stage in the …
Specific Identification Method
What is the Specific Identification Method? This method is used to identify inventory value. It involves keeping track of every item in inventory and allocating costs separately. This is the way …
What is Equity ?
Introduction In finance many would like to know What is Equity. Equity is the ownership of assets with debts or other liabilities attached to them. Equity can be measured for accounting …
What is the Cost of Goods Sold (COGS) ?
What Are the COGS (Cost of Goods Sold)? COGS (Cost of goods sold) is referred to the direct costs of the production of the goods which is sold by a company. …