Financial Statements Archives - Page 11 of 17

What is Retained Earnings to Total Assets? (Explanation, Formula, and Example)

Introduction: Retained earnings is a balance sheet item included in the equity section; it is the accumulation of all the profits of a company from the point of its commencement minus the profit distributed to the shareholders as dividends. This is assuming that the entity is making profits. However, most companies make losses at the […]

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Retained Earnings for a Non-profit Organization: Detail Explanation

Account for nonprofit, Retain earnings

Retained Earnings Retained Earnings also called accumulated earnings, retained capital or earned surplus appears in the shareholder equity section of the statement of financial position more commonly known as Balance Sheet. It is the sum of profits and losses at the end of the accounting period after deducting the amount of dividends. Retained earnings (ending

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Which Financial Statement Shows a Company’s worth?

Financial Statements

Net worth is termed as the book value or its owner’s capital in the company. The net worth of the company is the balance of all assets value subtracting the amount of liabilities where we could find on the balance sheet. Financial statements are prepared to inform the company’s stakeholders about the performance and worth

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How Is Petty Cash Reported in Financial Statements?

Financial Statements

Petty cash is a part of an organization’s cash in hand, used explicitly for small day-to-day expenditures which are not required to have a complicated authorization process. This amount is also used for all the expenses for which it is take too long to pay through bank transactions like issuing checks or bank transfers, and

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How does fixed asset impairment affect the financial statements?

Financial Statements

What is impairment? Impairment is a sudden decrease in the value of assets. It is booked when the net book value of the asset exceeds the recoverable amount. The formula to calculate impairment is as follows: Net book value – Recoverable Amount = Impairment The recoverable amount of asset is higher of value in use

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What Are the Required Financial Statements Under GAAP & IFRS?

Financial Statements

It does not matter if you are running a small, medium company or a large corporation, or organization, whether profitable or not for profit, you are required to prepare the financial statements to record all of the financial-related transactions that occur daily in your organization to accounting system so that you could establish the financial

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How Are Inventories Reported on Financial Statements?

Financial Statements, Inventories

Financial Statements: According to international accounting standards and generally accepted accounting principles, every entity is supposed to prepare annual financial statements, including the following: These statements or reports clearly explain how the business is performing financially so far. It includes and reports every transaction that has occurred throughout the year. After preparing financial statements, the

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Budgeted Cash Flow Statement – How to prepare it?

Budgeting, Financial Statements, Statement of Cash Flows

Introduction: Managing the cash flow of your business by budgeting is an important technique that you can adopt instead of spending a hectic time counting and remembering where all the money came from and went to. The cash budget allows you to estimate all your revenues and expenses beforehand and works as a guideline to

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Budgeted Balance Sheet: What Is It? And How Does It Work?

Balance Sheet, Budgeting

Balance sheet: A balance sheet is a financial statement that is prepared annually at the end of each accounting period reporting the levels of assets, liabilities, and equity that the company owns at that time. It is also called a statement of financial position as it is reporting the company’s position in the financial term.

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Audited Financial Statements – Why Is It Importance?

Financial Statements

Introduction: When an independent auditor gives his opinion/ report on the financial statements of the company its true and fair presentation is called audited financial statements. It is the responsibility of the company’s management is to prepare the company’s financial statements and related disclosures. These audited financial statements are then verified and audited by an

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