Chenggong Company Registration: You need to understand these professional terms for company accounting and tax filing

I believe many makers don’t know much about the professional terminology of accounting and tax reporting. But if you, who are about to become a boss, don’t understand these professional terminology of accounting and tax reporting, be careful of being fooled! So Man What Deqifu will introduce today is some related professional terms for accounting and tax filing.

Mande Enterprise Services listed four professional terms for accounting and tax reporting: opportunity cost, capital turnover rate, time value of funds, and cash flow.

1. Opportunity cost:

Every time you lose, you gain. Opportunity cost is a trade-off and choice, which means that you only focus on one aspect and lose profits in other aspects. opportunity. At this time, you have to weigh the pros and cons in these events and make the right choice: choose high value and give up high cost.

2. Capital turnover rate

I believe everyone is familiar with capital turnover, which is the process of continuous circulation of funds in production and operation activities. Capital turnover rate is the speed of capital turnover.

In other words, the less funds a company uses during its operations, but the income it earns is high, the more benefits it will earn. This shows that the company's turnover rate is high and the company is operating in good condition.

3. Cash flow

Cash flow reflects operating conditions, cash solvency, asset liquidity, etc. Cash flow can be divided into the amount of cash inflow and the amount of cash outflow.

4. Time value of funds

The time value of funds can also be interpreted as the "cost of using funds." That is, the value generated by funds during the production and circulation process. That is the value obtained after the funds are turned over. For example, if you transfer money to Alipay, it will not increase or decrease, but if you transfer money to Yu'e Bao, it is equivalent to buying a fund, and you can get income from it. This is the value of money and time, which can make money generate money!

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