The main financial goal of a business is to maximize profits. The financial position of a business depends on the availability and structure of economic resources, which are called its assets and capital. The relationship between these two is reflected
Retained Earnings and Accumulated Deficit When you look at the Profit and Loss Statement, the final number will be a Net Income or Net Loss, depending on how much money an organization has made less all the expenses, etc. Retained
Businesses are involved in thousands of business activities every single day. In order to record this financial data so that eventually we can produce the financial statements, we use the accounting equation and its elements to record business activities. Using
Definition Contra accounts are special accounts that are established to decrease the balance in another account indirectly. They preserve the identity of the primary account and provide an account to debit or credit when one does not exist. A contra
Income is the main indicator for assessing the economic activity of an entrepreneur (individual or legal entity). Making a profit is the goal of any business. Though gross and net both can describe income, they mean two completely different things.
Every business owner, whether a beginner entrepreneur or an already experienced business owner, is faced with situations that arise for the first time. At the initial stage of entrepreneurial activity, these are questions of creating a business, keeping records and
The goal of large or small businesses is to make a profit. It is such aspirations that become the driving force of capitalism. For any businessman or individual entrepreneur, the benefit is essential. This result is the reason for opening
Accounting in one form or another had existed for a very long time and appeared around the time when people began to engage in trade. Accounting is an integral part of entrepreneurial activity. It is essential that accounting is maintained
Unearned revenue represents income received by the organization in the reporting period but related to future reporting periods. In the composition of unearned revenue is a receipt for goods or services, the delivery of which will last a long time
What is a cash disbursement journal? This type of journal is used to record funds coming out of your company before they are included in the general ledger. However, not every payment can be called disbursement. This term is applied
