ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
From the web's #1 provider of financial analysis / ratio
analysis GOING CONCERN PRINCIPLE Definition GOING CONCERN
PRINCIPLE assumes that the accounting entity will maintain
proper accounting records from the date of its establishment to
the date of its liquidation. Learn new Accounting Terms NET
PROFIT MARGIN (NPM After Tax) measures profitability as a
percentage of revenues after consideration of all revenue and
expense, including interest expenses, non-operating items, and
income taxes. For a business to be viable in the long term
profits must be generated; making the net profit margin ratio
one of the key performance indicators for any business. It is
important to analyze the ratio over time. A variation in the
ratio from year-to-year may be due to abnormal conditions or
expenses which need to be addressed. A decline in the ratio over
time may indicate a margin squeeze suggesting that productivity
improvements may need to be initiated. In some