Financial Accounting

What is Ledger Balance? Definition, Examples, Importance, Characteristics

Every day, a bank computes the ledger balance of its accounts. The total amount of a bank account includes both withdrawals and deposits. Let us look into what is ledger balance definition, examples, importance and characteristics in the topic below. The following morning, the closing balance becomes the opening balance, and it remains unaltered throughout …

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What is a Liquid Asset? Definition, Examples, Overview

Liquid assets are those that can be quickly converted to cash without sacrificing value. Keep a portion of your cash liquid to cover living expenditures and unforeseen expenses. Consider the following examples of liquidity in the form of a frequency spectrum: Certain assets, depending on their worth, can be converted more quickly than others. Illiquid …

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Top 5 – Best Financial Health Strategies for Entrepreneurs

How would you define your company’s financial health strategies? Most entrepreneurs have the misconception that corporate financial health is reduced to making sales. If you want to run a profitable venture, you shouldn’t be one of them. Keeping your company on a solid financial footing and properly managing your funds are challenging tasks. But also …

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Limitations of Financial Accounting

Financial Accounting is the process of recording, encapsulating, and reporting the results of trade operations across time. These transactions are recorded in the financial statements, which include the income statement, balance sheet, and cash flow statement. All transactions are evaluated and summarized in a financial statement but accuracy of the data is still a question …

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