Non-operating income and expenses are the items on the income statement that are not related to the core business operations of a company. They include gains or losses from investments, foreign exchange, asset sales or disposals, impairments, and litigation. Non-operating … Continue reading What are Non-operating Income and Expenses and How to Account for Them?
Operating income, also known as operating profit or earnings before interest and taxes (EBIT), is the amount of income that a business generates from its core operations, after deducting the operating expenses. Operating income is a key indicator of a … Continue reading What is Operating Income and How to Calculate It?
Gross profit is the income that a company or organization earns from its sales of goods or services, after deducting the costs associated with producing or acquiring them. It is one of the most important indicators of a company’s profitability, … Continue reading What is Gross Profit and How to Calculate It?
Cost of Goods Sold (COGS) is the total cost of producing or acquiring the goods or services that a company sells during a period. It is an important measure of a company’s profitability, efficiency, and performance, as it affects both … Continue reading What is Cost of Goods Sold (COGS) and How to Calculate It?
ABC of Finance 