83(b) Election
An 83(b) election allows individuals who receive stock as compensation to pay taxes on the value of the stock at the time it was granted rather than...
Welcome to the Arbo Glossary! This concise and comprehensive resource provides definitions and explanations of key accounting, finance, and startup terms.
An 83(b) election allows individuals who receive stock as compensation to pay taxes on the value of the stock at the time it was granted rather than...
Amortization is the process of spreading the cost of an asset or loan over a period of time. It involves systematically allocating the expense rather...
A C corporation is a legal business entity structure commonly chosen by startup founders. It provides limited liability protection to shareholders...
The contribution margin is the difference between a company's revenue from sales and its variable costs directly associated with producing or...
The cost of goods sold represents the direct costs incurred by a company in producing or delivering its products or services. It includes expenses...
Deferred revenue, also known as unearned revenue or customer deposits, refers to money received by a company for products or services that have not...
A Delaware annual report is a filing requirement for businesses incorporated in Delaware. It must be submitted to the Delaware Secretary of State by...
Depreciation is the accounting practice of allocating the cost of tangible assets (such as equipment, buildings, or vehicles) over their useful life.
Doing Business As (DBA) refers to a fictitious name or trade name that a business can use instead of its legal name or the name of its legal business...
Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric that provides insight into a company's operating...
IRS Form 6765 is a tax form used to claim the Research & Development (R&D) tax credit
Form D is a filing with the Securities and Exchange Commission (SEC) required when a company offers and sells securities without registering the...
Form S-1 is a registration statement filed with the Securities and Exchange Commission (SEC) by companies planning to go public through an initial...
IRS Form SS-4 is the application form used to obtain an Employer Identification Number (EIN) for a business
GAAP refers to a set of standardized accounting principles and guidelines used to prepare financial statements
Gross margin represents the percentage of revenue remaining after deducting the direct costs associated with producing goods or delivering services.
An LLC is a legal business entity that combines the benefits of limited liability protection with the flexibility of a partnership.
Net profit, also referred to as the bottom line, is the remaining profit after deducting all expenses, including operating costs, taxes, and...
Net profit margin is the percentage of revenue that translates into net profit after deducting all expenses. It indicates the profitability and...
The quick ratio is a liquidity ratio that measures a company's ability to meet short-term financial obligations using its most liquid assets. SaaS...
An S Corporation (S Corp) is a business entity that elects to pass corporate income, losses, deductions, and credits through to its shareholders.
The burn rate represents the rate at which a company spends or loses money over a specific period. It indicates how quickly a company is depleting...
Dollar-Based Net Expansion Rate (DBNER) is a metric used to measure the revenue growth generated from existing customers through add-ons, upselling,...
Fair Market Value (FMV) represents the current value of a company's common shares or other assets. For public companies, FMV can be determined by the...
Forecasts are data-driven estimates of a company's future financial performance. They are essential for making informed business decisions, setting...
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