The process of getting financial statements audited is a really important step in lieu of ensuring that the organization has presented true and fair view of their financial position over the past year. Therefore, the responsibility of an auditor to provide assurance on that particular claim is quite significant, since it really impacts the overall […]
Auditors Responsibilities on Financial Statements (Explained) Read More »
Financial Statements are very important and useful tools when it comes to measuring the overall performance of the company across a given time frame. There are numerous stakeholders which make use of the financial statements, essentially because of the fact that they provide a snapshot regarding the company’s performance in shorter time duration. As a
Management Responsibilities on Financial Statements (Explained) Read More »
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
What is Retained Earnings to Total Assets? (Explanation, Formula, and Example) Read More »
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
Retained Earnings for a Non-profit Organization: Detail Explanation Read More »
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
How Is Petty Cash Reported in Financial Statements? Read More »
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
How does fixed asset impairment affect the financial statements? Read More »
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
What Are the Required Financial Statements Under GAAP & IFRS? Read More »
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
How Are Inventories Reported on Financial Statements? Read More »
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
Budgeted Cash Flow Statement – How to prepare it? Read More »
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.
Budgeted Balance Sheet: What Is It? And How Does It Work? Read More »