Financial Statements Archives - Page 3 of 24

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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What is a Common Size Income Statement?

Income Statement

Financial statements are a crucial part of reporting a company’s financial activities. Usually, these statements can show different aspects at a specific date or for a period. Most companies prepare four reports, usually occurring annually. Some companies also report their activities quarterly or monthly. Each financial statement plays a crucial role to present a different

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Why Income Statement is Important? 5 Points You Should Know

Accounting Principle, Income Statement

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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Do Dividends Go On the Income Statement?

Dividends, Income Statement

Companies need finance to operate and continue their business. This finance comes from various sources. Usually, companies also offer a return to those who provide funds. These returns may differ based on several factors. Sometimes, it may be direct, while others are indirect. Either way, companies use these returns to attract more customers and make

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

Statement of Cash Flows

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?

Financial Statements

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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How to overcome the limitations of financial statements?

Financial Statements

The share market is a significant source of income for many investors. Most investors hold various assets and securities in the market. Usually, they invest in those securities for two reasons, including capital gains and dividend income. On top of that, when they buy a company’s shares, they become its part-owner. It allows them to

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How to interpret financial statements for better business decisions?

Financial Statements

Interpreting financial statements is a skill that all investments and shareholders require. It consists of evaluating each statement individually and combinedly. By doing so, investors can receive information crucial for their relationship with the company. More specifically, interpreting the financial statements allows investors to make better business decisions. However, the process does not have a

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9 Popular Ways for Manipulating Financial Statements

Financial Statements

Financial statements are a link between a company and its stakeholders. Through this link, companies can present a picture of their operations. Usually, they show this picture through four primary financial statements. These include the balance sheet, income statement, cash flow statements and statement of changes in equity. Companies can use these statements to communicate

How Do I Account For Cash Dividends? (Explained)

Dividends, Retain earnings

Dividends represent the distribution of resources to shareholders. Usually, these resources include cash or stock that a company pays from its profits. At the end of each accounting period, companies decide how much dividends to pay to their shareholders. Usually, this process occurs annually. In some cases, however, companies may also pay quarterly or ad-hoc

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