The Word Balance Has Different Meanings At Different Times

Category: Finance, Financial Planning.

A balance sheet is a quick picture of the financial condition of a business at a specific period in time.

They are profit- making activities, which includes sales and expenses. The activities of a business fall into two separate groups that are reported by an accountant. This can also be referred to as operating activities. Profit making activities are reported in the income statement. There are also financing and investing activities that include securing money from debt and equity sources of capital, returning capital to these sources, making distributions from profit to the owners, making investments in assets and eventually disposing of the assets. Financing and investing activities are found in the statement of cash flows. The statement of cash flows also reports the cash increase or decrease from profit during the year as opposed to the amount of profit that is reported in the income statement.

In other words, two different financial statements are prepared for the two different types of transactions. The balance sheet is different from the income and cash flow statements which report, income of cash, as it says and outgoing cash. The word balance has different meanings at different times. The balance sheet represents the balances, or a company, or amounts s assets, liabilities and owners equity at an instant in time. As it s used in the term balance sheet, it refers to the balance of the two opposite sides of a business, total assets on one side, and total liabilities on the other. Accountants can prepare a balance sheet any time that a manager requests it. However, the balance of an account, such as the asset, revenue and expense, liability accounts, refers to the amount in the account after recording increases and decreases in the account, just like the balance in your checking account.

But they re generally prepared at the end of each month, quarter and year. It s always prepared at the close of business on the last day of the profit period.

Read more...

The Trust Would Then Sell The Property To The Real Estate Developer - Finance and Financial Planning:

Charitable remainder trusts can increase your income, avoid capital gains taxes, lower or eliminate estate taxes, serve as another type of retirement plan, serve humanity and put a warm feeling in your heart. In the Path of Progress.

So. What Is Cash Flow Planning - Roseann Bisson about Finance and Financial Planning:

You ve heard it a million times- cash can make or break a business. In fact, many PROFITABLE businesses fail because of cash flow issues.

You Cannot Wait To Leave Your Job And Enjoy Your Life - Finance and Financial Planning Articles:

Let s just say your 5 or 10 or 15 years or so away from when you think your might retire.