Financial Statements

An interim reporting is when the business produces a financial overview before completing the financial reporting cycle. These reporting periods are dependent on the discretion of the management, and these periods can be monthly, quarterly, and semi-annually depending on the discretion of management. This type of reporting leads to improved communication between businesses and the […]

Most companies prepare their financial statements in their local currency. This currency is the same in which these companies transact. For example, a company that reports its financial statements in dollars may also conduct its operations in the same currency. For some companies, however, the same may not apply, as these currencies may differ. Some

What is Collateral? The term collateral represents an asset that one party offers as security in exchange for receiving a loan. The party offering collateral is the lender that owns the asset. The counterparty is the lender that accepts collateral. This collateral may come in as fixed assets, such as property, equipment, vehicles, etc. Some

Accounting for common stock is very critical ranging from the date of issue of common stock to dividend declared and paid. In the previous article, we covered the cost of comm stock equity calculation. In this article, we cover how to account for the issuance of common stock. This ranges from the journal entry for

Introduction Financial statements are documents produced by a business that show its different aspects. Businesses prepare financial statements after every accounting period for several reasons. For example, financial statements help the stakeholders of business make decisions regarding their relationship with it. Similarly, even the business itself can benefit from producing financial statements as it allows

In this article, we cover the purpose of operating statement. This includes the overview of operating statement as well as each type of operating statement. Then, we will go further to the purpose of each operating statement. So let’s go through together! Overview There are five financial statements that businesses prepare to document and demonstrate

The statement of stockholders’ equity is also known by the following names; statement of shareholders’ equity, statement of equity, statement of changes in stockholders’ equity, statement of changes in shareholders’ equity, and statement of changes in equity. We usually use these key term interchangeably. Statement of stockholders’ equity is one of the five components of

Introduction When we talk about financial statements, we normally refer to the four main types of the financial statements. Those are statement of financial position which we normally call Balance Sheet, Statement of comprehensive income or income statement, statement of changes in equity and finally statement of cash flow. Each statement serve for different purposes.