Revenue vs Profit

One of the most basic questions that people ask when they’re looking at a balance sheet is: What’s the difference between revenue and profit? Put plainly, revenue is all income before expenses, while profit is the bottom line. Revenue There is one little trick to assessing revenue. All revenue comes from a company’s core business, [ Read More ]

Debit vs Credit

Debits and credits form the core of a process called double-entry accounting. Every debit is an expenditure, while every credit is a gain. Although it’s a little bit more complicated than that in practice, that forms the base of the differences of debit vs credit. Debit A debit is any transaction or amount that is [ Read More ]

Gross vs Net – What’s the Difference?

Gross Net Meaning Gross refers to the total amount before anything is deducted. Many important accounting statistics use this method, such as gross earnings and gross profit. Net refers to the amount remaining after certain adjustments have been made for debts, deductions or expenses. Gross vs Net Income Gross income is the pre-tax net sales [ Read More ]

Medicare vs. Medicaid – What’s the Difference?

Medicare and Medicaid. Both are government programs, both relate to healthcare, both are in the news much of the time…and both begin with the letter M. It’s easy enough then to confuse the two programs. But that’s the extent of the similarities. For the most part, each program provides benefits to a different segment of [ Read More ]

GDP vs. GNP – What’s the Difference?

If you spend much time listening to politicians or watching financial news programs on TV or on the internet, you’ve undoubtedly heard the terms “GDP” and “GNP”. The terms come up in discussions of the economy or big picture financial matters, and sometimes seem interchangeable. But what are GDP and GNP, and what is the [ Read More ]

Goals vs. Objectives – What’s the Difference?

Its often hard to know the difference between goals and objectives – in fact, we often use the two terms interchangeably. But knowing the difference can help us to use both in a constructive way, to get us from where we are to where we want to go. Both are a Way of Moving Forward [ Read More ]

Interest Rate vs APR – What’s the Difference?

Nearly all loan types come with two interest rates: the actual interest rate and annual percentage rate, or APR. Though the disclosure of both rates is done primarily to help borrowers decide what the true cost of loans are from one lender to another, they often confuse borrowers in the process. Interest Rate Interest rate [ Read More ]

S Corporation vs. LLC – What’s the Difference?

Many businesses – small ones in particular – make the decision to seek some type of legal and liability protections, as well as special tax treatment. This is typically done through adopting a business organization form that will effectively separate the business owner(s) from the business itself. In doing so, the obligations and liabilities of [ Read More ]

C Corporation vs S Corporation – What’s the Difference?

C Corporation C Corporations, or “C Corps” as they’re commonly known, are the primary format of publicly held companies. Their shares can be easily bought and sold on public stock exchanges since there is no limit on the number of shareholders they can have. In addition, unlike S Corporations, C Corp shareholders are not limited [ Read More ]

401(k) vs IRA – What’s the Difference?

401(k) and IRA plans are two of the most common retirement investment vehicles. Each allows you to reduce current income for tax purposes through annual contributions, and both allow for tax deferred accumulation of investment income. But each plan is unique, and offers options and opportunities that the other doesn’t. 401(k) A 401(k) is a [ Read More ]

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