What Does Accrual Basis Mean?

Definition: The accrual basis of accounting is a system of recognizing revenues and expenses when they are incurred instead of focusing on when they are paid or collected. This means that both revenues and expenses are recognized and recorded in the accounting period when they occur instead of when payments are actually made. GAAP requires businesses to use […]

What does Balance of Trade mean?

Definition: Balance of Trade (BOT) is the difference in the value of all exports and imports of a particular nation over a period of time. A positive or favorable trade balance occurs when exports exceed imports. A negative or unfavorable balance occurs when the opposite happens. Simply put, if a country exports more than what it […]

What does Bank Reconciliation Mean?

Definition: A bank reconciliation or bank rec is a report used to check and explain the differences between the cash balance in a company’s accounting ledger and the bank statement balance. A bank reconciliation is also one of the main ways to prevent fraud and embezzlement of company funds. Here is how it works. What does Bank […]

What Does Barriers to Entry Mean?

Definition: Barriers to entry are factors that can delay or prevent the new competitors from entering an existing market or producing a product. Barriers are typical in monopolistic markets making it difficult for competitors to enter or compete in the space. What Does Barriers to Entry Mean? What is the definition of barrier to entry? Structural barriers […]

Scroll to top