Accounting

What is Cash Flow Statement? Definition, Example, Format and Cash Flow Report Analysis

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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What is Qualitative Data Analysis? Definition and Methods to Measure Performance

Qualitative Data Analysis Definition: Qualitative data analysis is a process of evaluating industrial data based on subjective data. For example: quality of innovative work, management decisions, industry model, relationship with other business entities, productivity, etc. This data is examined based on different types of ratio from various accounting statements, profit / loss statement and balance …

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How to Analyze and Read the Annual Report of a Company for Financial Analysis?

Every company is required by the SEC (Securities and Exchange Commission) to provide annual reports to shareholders and the general public. These reports contain important financial information, as well as summaries of the progress of the companies by the CEO, Board members, etc. an investor can use annual reports to decide whether or not. Here …

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Branches of Accounting or Different Types of Accounting

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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What is a Balance Sheet? Definition, Format and Example of Balance Sheet

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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What is a profit and loss statement or Income Statement? Definition with Examples

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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What is a Trial Balance? Definition, Examples and Limitations of bookkeeping

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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What Is a General Ledger? Definition, Format and Example of General Ledger

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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What are Journal Entries? Definition, Format and Examples of Journal Entry

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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Key Important Steps of Accounting Cycle and Accounting Process

Accounting process to some extend is also referred as accounting cycle. Traditional accounting methods are been changed in today’s accounting software. But still process of accounting and accounting cycle remains the same irrespective of traditional or modern accounting methods. In this topic we will initially understand what is accounting cycle followed by the three steps …

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