A cash flow statement is one of the "Big Three" financial statements for businesses, along with the income statement and the balance sheet. Cash flow statements are one of the three fundamental financial statements financial leaders use. Along with... Read more
Kashoo uses a basic chart of accounts structure which allows new users to choose their business type during product setup. Kashoo then creates the appropriate chart of accounts during the setup process. The chart of accounts lists all the accounts f... Read more
If not, an adjusting entry is made to bring the cash book into conformance with the bank's information. A three-column cash book records all three – cash transactions, purchase and sale discounts, and bank account transactions. There are a number of... Read more
This diary acts as their simple cash book, helping them keep track of the money that comes in and goes out throughout the day. Because the cash book is updated continuously, it will be in chronological order by transaction. In the description column... Read more
A triple-column is an extended version of the double-column cash book. Along with columns for cash and bank, it includes a third column for writing down the discounts. The discount column shows the amount of discount paid or received on any cash or... Read more
They’re easy mistakes to make, but they can have serious unintended consequences for your business. The income of future periods will be overstated because no depreciation expense is recorded in these years. The current period's income will be... Read more
Therefore, businesses need capital budgeting to assess risks, plan ahead, and predict challenges before they occur. The capital budgeting process can involve almost anything including acquiring land or purchasing fixed assets like a new truck or mac... Read more
EAA stands for Equity Annual Annuity Approach, it is calculated using Net Percent Value of projects, rate per period and number of periods in years. This is a great online budget calculator. Cash Flow at Time 1 - Enter the cash flow which occur... Read more
A capital expenditure is assumed to be consumed over the useful life of the related fixed asset. In other words, the cost of capital expenditures is spread out over many periods or years, whereas revenue expenditures are expensed in t... Read more
With this method, you record the profit and loss when money changes hands. In other words, your business does not record the income or payout until it gets made. However, an owner can prepare an income statement to show to stakeholders, attract new... Read more
