Financial Reports- Understanding Income Statement Profit & Loss account also known by the name of Income Statement, summarizes the overall expenditures, revenues, net profit and loss incurred during the accounting period be it monthly, quarterly or yearly. It reveals the profit and losses so generated during the period by carrying on its operations significantly. These type of statements are prepared and presented using the method of cash system of accounting
Financial Reports- Preparation of Balance Sheet A balance sheet gives on the overview of one’s financial position of the company, sole proprietorship, private limited corporate or other government organizations. It helps in defining the position of assets, liabilities and equity of an organization at the end of financial year. Basically a balance sheet is prepared at the end of set period of time be it quarterly, annually or monthly. With
How can we differentiate Finance from Accounting? Are these two terms similar ? People consider both these concepts similar but this is not the case as both of the terms are interlinked up to some extent but both of these concepts at time of applicability requires different skills and professional personnel to deal with. Let’s discuss these concepts to clear ambiguity that exist in our mind with respect to these
Financial Literacy, core of life What is Finance? Finance is majorly described as the art and science of managing money. It is a procedure to raise funds and thus understanding the system of investment and other monetary and financial instruments. It is the term used to allocate assets, liabilities, expenditures and processes to extract the best out of the activities. It is basically a process to manage and multiply the
