Kategori: Bookkeeping

The balance sheet reports a company’s financial health through its liquidity and solvency, while the income statement reports its profitability. A statement of cash flow ties these two together by tracking sources and uses of cash. Together, these financial statements attempt to provide a more clear picture of a business’s financial standing. The financial statements …

The effective interest rate takes into account the impact of compounding, providing a more precise measure of the return on investment for the lender. A company lends one of its important suppliers $10,000 and the supplier gives the company a written promissory note to repay the amount in six months along with interest at 8% …

On the left hand side of the accounting equation the assets increase by 63,500. This is matched on the right hand side by an increase in liabilities of 42,750, an increase in equity of 20,750. If you’re trying to edit an opening balance when reconciling an account in QuickBooks Online with your bank or credit …