Category: Terminology
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Accounting
Accounting refers to the business function of recording economic activity. Accounting includes the processing of information and a reporting role. The accounting term encompasses a broad range of functions for every business. It starts out with a system of gathering economic information, categorizing the material, inputting the data into an accounting program, and generating outputs for decision…
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Contract
A contract is defined as any oral or written agreement between two or more parties that exchange rights and/or duties between the parties. Every contract has four essential elements. The first two create ‘mutual assent’ or what is commonly referred to in law as a ‘meeting of the minds’.
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Profit
Profit refers the earnings from the business operations. It customarily means the bottom line of the business income statement or its profit and loss statement. For many business owners, it refers to the amount earned before income taxes are paid. However, this is not correct.