Components of the Cash Flow Statement and Example

Components of the Cash Flow Statement and Example

In accounting, the balance sheet is a snapshot on a company’s finances at a fixed time; accordingly, the cash flow statement reflects the changes in company’s finance over a considerably longer time. The statement reflects both the cash inflow and the cash outflow for a specific period of time. The […]

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What Is The Income Statement And Examples

What Is The Income Statement And Examples

Compared with the balance sheet reflecting the activity of a company at some point, the income statement shows the company’s financial situation over a long period of time. In other words, the income statement deals with the company’s revenues and expenses, presenting a summary of its financial activities from 3, […]

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Types of Fixed Assets

Types of Fixed Assets

Also called “tangible assets”, the fixed assets are used for the business operation, having a price higher than a predetermined threshold dollar amount when purchased and supposed to last at least one year. One of the generally accepted accounting principles-materiality-speaks about the importance of an accounting event concerning the financial […]

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What is a Balance Sheet

What is a Balance Sheet

The Balance Sheet depicts the financial situation of a company, measuring how healthy and profitable the company actually is. At the end of the accounting period (year, quarter, month), the balance sheet lists the company’s assets and the liabilities it owes. In other words, the balance sheet is about: – […]

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