Preparing Financial Statements

Preparing Financial Statements The statement explains the changes in a company’s Share Capital, accumulated reserves and retained earnings over the reporting period. It breaks down changes in the owners’ interest in the organization, and in the application of retained profit or surplus from one accounting period to the next. Line items typically include profits or[…]

Balance sheet equation definition and meaning

Balance sheet equation definition and meaning .gbip::beforecontent:url( (min-resolution:1.25dppx),(-o-min-device-pixel-ratio:5/4),(-webkit-min-device-pixel-ratio:1.25),(min-device-pixel-ratio:1.25){.gbii::before{content:url(}.gbip::before{content:url(” width=”257px” alt=”Accounting Equation”/>|||||||||||||||||||||||||||||} 4. Cash ratio Its applications in accountancy and economics are thus diverse. Now it shows owners’ equity is equal to property (assets) minus debts (liabilities). Since in a corporation owners are shareholders, owner’s equity is called shareholders’ equity. The expanded accounting equation allows you[…]