Financial Statements

How Will You Treat Payment of Interest on Debentures in Cash Flow Statement?

Companies prepare financial statements to report their activities to the stakeholders. These include four reports. Out of these, three use the accrual concept in accounting to present activities. While it is a mandatory accounting concept, it can also be confusing. Furthermore, they do not show how a company uses its cash resources or report cash …

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Where Do Security Deposits Go on a Cash Flow Statement?

The cash flow statement is one of the primary financial statements prepared by companies for financial reporting. This statement covers the cash movements in cash and cash equivalent balances during a period. In accounting, the cash flow statement allows companies to report cash activity. The other financial statements use the accrual concept, which can be …

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How Do Proceeds on Sale of Fixed Assets Affect Cash Flow Statement

Cash inflows and outflows are a crucial part of any company. These flows may relate to financial or business transactions. When these transactions occur, companies can record the cash flows in their accounts. These cash transactions then become a part of the cash flow statement. In accounting, cash flows are not necessary to record a …

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How Do Acquisitions and Disposals of Business Affect the Cash Flow Statement?

Companies are separate legal entities that can exist on their own. These entities are similar to other businesses since they operate similarly. However, they differ from other structures due to the separate legal entity feature. Through this, companies can transact without their owners’ involvement. Nevertheless, they may also face issues with being independent of their …

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Why Income Statement is Important? 5 Points You Should Know

Investors invest in companies expecting returns and income. Usually, companies pay dividends which can constitute earnings for investors. On top of that, some companies may also provide capital gains through increasing share prices. However, investors must first investigate the company to ensure it can offer those returns. The primary source they can use is the …

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Accounts Payable in Cash Flow Statement – How Is It Effect The Statement?

Accounts payable is the sum of money owed to suppliers and creditors by a business. It represents the current liability on the balance sheet and operating activity on the cash flow statement. Accounts payable can impact the cash flow of a business in the short term. Therefore, it represents an important line item under the …

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How to Get Financial Statement for US Private Companies?

Generally, private companies in the United States are not required to publish financial statements. So, it can be difficult to obtain financial information from these companies. From the US perspective, private companies refer to the companies that have been registered and filed a certificate of incorporation. Families or individuals may own these companies, and the …

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