Most common and important objectives of accounting for a company are usually systematically report transactions, analyzing those transactions, prepare financial statements, preparing balance sheet. This information will help in financial decision-making and important towards business activities. Accounting helps accountants as well as financial departments with several of business choices to make your organizational procedures a …
Discounted Cash Flow Definition: In Finance, the method of discounted cash flow, discounted cash flow or discounted bottoms cash flow (DCF for its acronym) is used to evaluate a project or an entire company. DCF methods determine the present value of future cash flows discounting them at a rate that reflects the cost of capital …
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Financial Ratio Definition: The financial ratio or financial indicators are coefficients or reasons that provide financial and accounting units of measurement and comparison, through which, the ratio (division) together two data direct financial, allow analyzing the state current or past an organization to function at optimum levels defined for it. The Financial Ratios are comparable …
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Cash Flow Statement Definition: Cash flow statement is one of the new financial statements that the company has incorporated reform of 2007. This is a state that reports on the use of monetary assets such as cash and cash equivalents categorizing the changes by activities and indicating the net change of such magnitude in the …
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There are several branches of accounting to maintain accounts at present. Different types of accounting that range from maintaining records, auditing to preparing income tax returns. Accounting professional trend to specialize in one of these field as their career option as accountant. Branches of Accounting (or) Different Types of Accounting: Here we will explain different …
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Balance Sheet Definition: In financial accounting, “Balance sheet is a financial statement summary report of an assets, liabilities and equity capital of an individual or a company or an organization at a specific given time”. This provides adequate information to investors, shareholders or a group about the company’s financial strength at given point of time. …
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Profit and Loss Statement Definition: Under financial accounting, “profit and loss account, statement of revenue or loss, financial performance statement, operating statement, earnings statement, statement of profit and loss, P&L statement, Income statement all this terms refers to Profit and Loss statement of the financial reports”. This statement shows the revenue and expenditures of a business …
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Trial Balance Definition: In Accounting, Trial balance is a consolidated list of all the general ledger accounts of the business. Debit balances of ledger accounts will be listed across debit column of trial balance. Whereas Credit balances of ledger accounts will be listed across credit column of trial balance. Information listed on this statement report is …
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General Ledger Definition: In a financial accounting, super set of accounts that summarize records of transactions occurred during a specified period for a business or an organization is called as General Ledger Account. All the credit and debit balances of ledger account should be equal. This information is then used to prepare financial statement of …
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In accounting system, Journal entry consists of transactions which are either a credit or debit transactions. Total of debit and credit journal entry transactions are unbalanced. Journal entry can record unique or recurring transactions. Therefore, Journal entry transactions directly affect the balances of general ledger accounts. “Journal entry is a method of posting transactions into …
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