ACCOUNTING EXPERTISE

ALL ABOUT ACCOUNTING : 49th BLOG           💎 ACCOUNTING💎 ★ Accounting exercise and practices :   Lesson : 5 [Part : 4] Hi friends  🙏 Today's discuss final exercise Relationship between Financial Statements.                               So let's discuss .... * RELATIONSHIP BETWEEN FINANCIAL STATEMENTS : 1. What are two examples of non-cash items?  * Ans : i. Depreciation Expense ii. Provision for Loan Losses 2. What is the purpose of creating the Statement of Changes in Financial Position? * Ans : The Statement of Changes in Financial Position is created in order to determine whether an organization has enough cash flow (or working capital) from operations and other sources and uses of cash. It is important that cash flow be forecasted accurately for two reasons:  (i) Idle funds are expensive. If an Organization has branches which it charges for  funds dis...

ALL ABOUT ACCOUNTING : 48th BLOG           💎 ACCOUNTING💎 ★ Accounting exercise and practices :   Lesson : 5 [Part : 3] Hi friends  🙏 Today's discuss remaining part of Relationship between Financial Statements.                               So let's discuss .... * RELATIONSHIP BETWEEN FINANCIAL STATEMENTS :   ★ THE CASH FLOW STATEMENT :  Cash flow is the net amount of cash that an entity receives and disburses during a period of time. A positive level of cash flow must be maintained for an entity to remain in business, while positive cash flows are also needed to generate value for investors. The time period over which cash flow is tracked is usually a standard reporting period, such as a month, quarter, or year. Cash inflows come from the following sources: Operations. This is cash paid by customers for services or goods provided by the entity. Financing activi...

ALL ABOUT ACCOUNTING : 47th BLOG           💎 ACCOUNTING💎 ★ Accounting exercise and practices :   Lesson : 5 [Part : 2] Hi friends  🙏 Today's discuss remaining part of Relationship between Financial Statements.                               So let's discuss .... * RELATIONSHIP BETWEEN FINANCIAL STATEMENTS : ★ THE BALANCE SHEET : A balance sheet lays out the ending balances in a company's asset, liability, and equity accounts as of the date stated on the report.  The balance sheet is commonly used for a great deal of financial analysis of a business' performance. Some of the more common ratios that include balance sheet information are: ACCOUNTS RECEIVABLE COLLECTION PERIOD : The accounts receivable collection period compares the outstanding receivables of a business to its total sales. This comparison is used to evaluate how long customers are taking to pay the selle...