Cash flow statements analyze revenue inflow from various sources, including investments and financing activities. The structure is essential for accurate cash flow analysis and consistency between periods. Preparing a cash flow statement allows for quick identification of changes in revenue-generating processes, and it is now easier than ever with accounting software. Cash flow statements are […]
The thesis statement is the main topic of an essay, usually placed in the first paragraph. To write a strong thesis, the writer should decide their stance on the topic and provide concrete reasons to support it. The thesis should be clear, short, and fact-based, with a strong argument and no use of “I think” […]
Closing statements are documents that detail the terms of a business transaction between a supplier and a customer, such as in real estate. They contain all pertinent information associated with the transaction and serve as a cover page for all individual documents associated with the sale. Closing statements are a common business document that help […]
An insurance income statement records an insurance company’s profits and losses, calculated by subtracting expenses from income. Premiums and losses are documented, and expenses include claims payments, reserves, and agent commissions. The statement shows whether the company is sustaining risks and generating profits. An insurance income statement is a document that records all profits and […]
Companies must use an absorption cost income statement to report to external entities. This method includes all overhead costs in inventory costs, reducing gross profit and providing a more accurate picture of production costs. However, allocating costs to individual units can be challenging, and net income is affected by inventory levels. Some see this method […]
Income statements and balance sheets are important accounting documents used by organizations, particularly in the US where they must be filed with the SEC. Income statements list income and expenses over a period, while balance sheets provide a snapshot of assets, liabilities, and equity at a specific point in time. These documents, along with retained […]
Foreclosure occurs when a lien holder files notice to take possession of a property due to the debtor’s failure to pay a debt. Foreclosures often involve mortgages and other types of home loans, but tax authorities and service providers may also impose liens on real estate. In some cases, a lien holder can file a […]
A personal development statement is a unique process that requires reflection on past experiences and transferable skills. It can be used to prepare for future opportunities in education or employment and may include an action plan for weaknesses. It can also address reasons for continuing education or knowledge of a chosen industry. A CV may […]
Comparative statements are financial statements that allow for easy comparison of line items from different time periods. They are useful for analyzing sales and production costs, and can be used by any organization dealing with finances. Comparative statements are financial statements that cover a different time period, but are formatted in a way that makes […]
A budgeted income statement is a projection of a company’s future revenues and costs based on past income statements. It helps companies estimate future profitability and identify flaws in their economic plans. It should be used in conjunction with a budgeted balance sheet to get an estimate of a company’s future prospects. A budgeted income […]
A common size income statement shows each account as a percentage of net sales value, making it easy to compare the impact of each account on earnings and compare different periods. It can also be used to compare companies and measure performance against industry standards. A common size income statement is a financial statement that […]
An utterance is a section of spoken language, but its definition is debated. Spoken and written language differ due to pauses in speech. Enunciation is used to study sections of speech, as sentences don’t always apply. The definition of utterance can refer to a turn or words between pauses. An utterance can be defined simply […]
Creating an accurate and complete monthly income statement is important for tracking expenses and comparing income to costs. Color coding and using software can make it easier to read and calculate results. All sources of income and expenses must be included for individuals and businesses. When preparing a monthly income statement, it is important that […]
A bank reconciliation statement compares personal accounting records with those of a bank to identify discrepancies, which can be caused by errors or fraudulent activity. It is important to bring any discrepancies to the attention of the bank quickly. Checks can take a long time to clear, so it is important to keep track of […]
Statement billing lists all accounts for a period in one document, making record-keeping easier and allowing customers to make a single payment. It is standard for credit card companies and can require payment in full or a minimum amount. It is more cost-effective for businesses than sending multiple small invoices. Statement billing is a billing […]
A proxy statement is a document prepared by a company that provides information on issues facing the company that need to be voted on by shareholders, as well as data on the company’s officers and current board structure. It includes information on executive compensation, the composition of the control committee, and the compensation structure of […]
