Financial Statements

Understanding the Statement of Financial Position (Balance Sheet) and Its Importance in Financial Reporting

Definition: The Balance Sheet, also known as the Statement of Financial Position, is one of the five essential Financial Statements that provide crucial financial information about an entity at the end of the balance sheet date. The Balance Sheet presents three key pieces of information, including Assets, Liabilities, and Equity. It is typically presented in

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What Is The Condensed Financial Statement?

Companies commonly arrange a condensed financial statement along with the customary financial statements. The core groundwork on these documents serves various legal commitments and is usually associated with an episodic audit. Nevertheless, except for substituting comprehensive financial statements, condensed financial statements turn out to be the additional documents or authentic supplementary papers essential during the

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What Is a Compilation of Financial Statements? (Ultimate Guide)

Accounting is a process within companies to identify, analyze, summarize, record, and present financial transactions. This process involves an accountant obtaining data from various business transactions. Once they have the required data, they can start inputting it into a company’s financial systems. Most modern accounting systems process the data and prepare the result automatically. Accounting

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What Causes Inventory Turnover Ratio To Increase Or Decrease?

The financial statements of any business entity give insights into any business entity’s financial health and performance. However, a business entity might need to perform further analysis to deeply evaluate the financial results. Therefore, companies perform different financial analyses. The popular type of analysis is sensitivity analysis, vertical & horizontal analysis, ratio analysis, growth rates,

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Valuation of Intangible Assets: What Are The Top Methods?

Assets are resources owned or controlled by a company. These resources also come with a future inflow of economic benefits. Usually, these include items such as property, plant, equipment, patents, inventory, etc. Companies use these items to conduct business and generate profits. Every company needs assets to survive and stay active within its specific industry.

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