Financial Reporting

Is Owner Withdrawal a Debit or Credit? (Accounting for Owner Withdrawal)

When individuals create a business venture, they introduce capital into it. This capital helps them grow and fund their operations. The business may either make a profit or a loss. Usually, once it goes through several accounting periods, it will accumulate some earnings. Some businesses use these earnings to invest in new operations. Others, however, …

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3 Main Purposes of Financial Statements (Explained)

Overview: Financial statements are the reports of the entity’s financial transactions and events, and they are prepared and used for many different purposes. In general, there are five types of financial statements, and those statements contain five elements on these statements. These statements and elements are prepared and presented for their own different purposes and …

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