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What Are Balance Sheet Accounts? (Detail Explanation)
International Financial Reporting Standards(IFRS) dictate the companies the standards for preparing the financial statements. According to the standards and regulations, companies must disclose their financial statements. Preparation of statements is mandatory...
What Is An Income Statement Account? (Explained)
One of the primary purposes of a business is: Earning Profit or Making Revenues Or Generate Income Profit earning is a basic purpose no matter which industry, scale, type, or form of business. Every business entity closes its financial accounts at the end of a...
Relationship Between A Balance Sheet And Financial Statement
The goal of every organization, especially a profit-making organization, is to maximize profits and minimize losses. If this must be achieved, then accurate transactional records of the business must be kept and reviewed periodically. Thus, this would require that a...
Understanding the Balance Sheet of A Bank (Explained)
The balance sheet of a bank is quite different from that of other companies and businesses. Some elements that make up a company balance sheet, such as accounts receivables, accounts payable, and inventory, will not be seen in a bank's balance sheet. Rather, you will...
The Different Between Balance Sheet and Profit And Loss You Might Not Know
Both balance sheet and profit and loss are important financial statements mostly used for keeping accounts. It is used mostly by business owners. It includes assets, equity for shareholders, and liabilities. Define balance sheet A balance sheet is a statement used...
9 Tips on How to Read a Company Balance Sheet.
As a Shareholder or a potential investor of a company, it is essential to know how a balance sheet works, how it is organized, analyzed, and read. To read your balance sheet, you need to evaluate your company assets, liabilities, and equity to better view what your...
Understanding Trade Receivables and Other Receivables in Balance Sheet
The Balance Sheet is considered to be one of the primitive sources of decision-making for companies. This is primarily because it enlists all the details that help stakeholders draw a reflection regarding the company's financial position. In this regard, assets tend...
Understanding Prepaid Expenses in the Balance Sheet
Overview Accrual-based accounting is used across all organizations today to apply the matching principle of accounting. This is mainly done to match the revenues for a particular period with the subsequent expenses covered in the given time frame. This helps to...
Understanding Cash and Cash Equivalents in the Balance Sheet
Definition of Cash and Cash Equivalents Cash and Cash Equivalents mainly refer to the line items on the Balance Sheet that represent the underlying value of the company's assets that are in the form of cash or any other liquid form of cash. They mainly include a...
