If you refer to below accounting equation, owner’s equity form one of the three key elements of a Balance Sheet. Let understand &/define Owner’s Equity:
Continue reading about Capital Side Of The Balance Sheet(Part1of2)
In this Part 3, let’s look at what are really long term liabilities in a typical Balance Sheet:
Continue reading about Long Term Liabilities Of The Balance Sheet(Part3of3)
In this Part 2, let’s understand what are current liabilities:
Continue reading about Current Liabilites In The Balance Sheet(Part2of3)
This Part 1 explains what’s liabilities the component of the total liabilities side of a typical Balance Sheet:
Continue reading about Liabilities Side Of The Balance Sheet(Part1of3)
This last part of the article deals with non-current assets of a Balance Sheet. They consists of the Fixed Assets and Long Term Investments. Let understand the following:
Continue reading about Assets(Non-Current) Side of The Balance Sheet(Part3of3)
This part 2 of the assets side of the Balance Sheet specifically looks what’s current assets and its components: WHAT ARE CURRENT ASSETS? Current assets are assets: that are expected to be realised in, or is held for sale or consumption in, the normal course of the enterprise’s operating cycle ; or [...]
Continue reading about Assets(Current Asset) Side Of The Balance Sheet(Part2of3)
When we study the accounting equation, we alway see that the equation always balance.Based on this fundamental rule of dual aspect or double entry system or procedure, the statement prepared will alway balance hence the word called “Balance ” Sheet. This Part 1 of this article looks at the asset side of the Balance Sheet. [...]
Continue reading about Balance Sheet And Its Assets Side(Part1of3)
In an annual report whether for a listed company or not, there is usually a sectioncategory titled: “Financial Statements”. Hence, it is important to understand what really comprises the schedules/statements in a Financial Statement. THE COMPONENTS OF FINANCIAL STATEMENTS are:- Balance Sheet Income Statement A statement showing either: All changes in equity, or Changes in [...]
Further to Part 1 where we understand what is an Income Statement. This article looks at what are inside the Income Statements: COMPONENTS IN THE INCOME STATEMENT: Net Revenue A Cost of Goods B Gross Margin C=A-B NET REVENUE: NET REVENUE are the list prices of the goods and/services less any discounts offered to the [...]
Continue reading about Components Of An Income Statement(Part2of2)
From the bookkeeping perspective, once we have put in all the relevant adjustments, we can then from the post adjusted trial balance to extract/prepare the Income Statement. Before preparing even this Income Statement ( which was previously called by many as Profit & Loss Account/Statement), we need to know what really is this Income Statement. [...]
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