What Are the Five Audit Assertions? (The 5 Most Important)

Companies prepare financial statements to report their financial standing. These statements usually include the balance sheet and income statement. While these are the most prominent ones, companies also prepare the cash flow statement and statement of changes in equity. Usually, companies report financial information in their accounts at the end of each accounting period. This …

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How to (Closing) End Journal Entry?

Companies record accounting entries during a period. These entries concern business transactions that they face during that period. Usually, companies record these transactions as they occur. During this process, they consider various accounting principles and standards. Companies use journal entries to record those transactions. Before that, companies may also put them on the books of …

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How to interpret financial statements for better business decisions?

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 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 …

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What is the Objective of Financial Accounting? (10 Main Objective You Should Know)

Financial accounting aims to achieve operational management of accounting transactions related to business. It’s focused on collecting transaction-wise details, recording, summarizing, and reporting this information is structured and useable form.  Further, the process is designed to help businesses keep a detailed record that helps meet legal and constructive obligations. Let’s discuss the objectives of financial …

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