Resources

The Arbo Glossary

Welcome to the Arbo Glossary! This concise and comprehensive resource provides definitions and explanations of key accounting, finance, and startup terms.

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    Accounting & Tax

    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...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Amortization

    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...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    C Corporation (C Corp)

    A C corporation is a legal business entity structure commonly chosen by startup founders. It provides limited liability protection to shareholders...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Contribution Margin

    The contribution margin is the difference between a company's revenue from sales and its variable costs directly associated with producing or...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Cost of Goods Sold (COGS)

    The cost of goods sold represents the direct costs incurred by a company in producing or delivering its products or services. It includes expenses...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Deferred Revenue

    Deferred revenue, also known as unearned revenue or customer deposits, refers to money received by a company for products or services that have not...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Delaware Annual Report

    A Delaware annual report is a filing requirement for businesses incorporated in Delaware. It must be submitted to the Delaware Secretary of State by...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Depreciation

    Depreciation is the accounting practice of allocating the cost of tangible assets (such as equipment, buildings, or vehicles) over their useful life.

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Doing Business As (DBA)

    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...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    EBITDA

    Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric that provides insight into a company's operating...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Form 6765

    IRS Form 6765 is a tax form used to claim the Research & Development (R&D) tax credit

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Form D

    Form D is a filing with the Securities and Exchange Commission (SEC) required when a company offers and sells securities without registering the...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Form S-1

    Form S-1 is a registration statement filed with the Securities and Exchange Commission (SEC) by companies planning to go public through an initial...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Form SS-4

    IRS Form SS-4 is the application form used to obtain an Employer Identification Number (EIN) for a business

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Gross Margin

    Gross margin represents the percentage of revenue remaining after deducting the direct costs associated with producing goods or delivering services.

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Limited Liability Company (LLC)

    An LLC is a legal business entity that combines the benefits of limited liability protection with the flexibility of a partnership.

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Net Profit

    Net profit, also referred to as the bottom line, is the remaining profit after deducting all expenses, including operating costs, taxes, and...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Net Profit Margin

    Net profit margin is the percentage of revenue that translates into net profit after deducting all expenses. It indicates the profitability and...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Quick Ratio

    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...

    Arbo Team Jul 19, 2023
    Accounting & Tax

    S Corporation (S Corp)

    An S Corporation (S Corp) is a business entity that elects to pass corporate income, losses, deductions, and credits through to its shareholders.

    Arbo Team Jul 19, 2023
    Accounting & Tax

    Delaware Franchise Tax

    The Delaware Franchise Tax is a fee imposed on businesses incorporated in Delaware. It is unrelated to franchised businesses but applies to many...

    Arbo Team Jul 18, 2023
    Accounting & Tax

    Qualified Small Business Stock (QSBS)

    QSBS refers to stock issued by a qualified small business that may qualify for certain tax benefits, such as excluding capital gains upon its sale,...

    Arbo Team Jul 18, 2023
    Accounting & Tax

    Annual Recurring Revenue (ARR)

    Annual Recurring Revenue (ARR) is recurring revenue, as defined by your revenue recognition policy, calculated annually. ARR is the sum of...

    Arbo Team Jul 18, 2023

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