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What is a personal financial statement? The term personal financial statement refers to a document or spreadsheet that describes an individual’s financial situation at a particular time. The statement usually includes general information about the person, such as name and address, as well as a breakdown of total assets and liabilities. The statement can help …

Month after month, many people go through their bank and credit card statements and are amazed that they’ve spent more than they thought. To avoid this problem, a simple method of recording income and expenses is to have personal financial statements. Just like those used by businesses, financial statements give you an indication of your …

What Are Financial Statement Assertions? Financial statement assertions, also known as management assertions, are explicit or implicit statements that a company makes about the fundamental accuracy of the information contained in its financial statements: the balance sheet, income statement, and statement of cash flows. Treasury. Financial statement assertions are an official statement by an enterprise …

What is a common size financial statement? A common-sized financial statement displays items as a percentage of a common baseline figure, such as total revenue. This type of financial statement allows easy analysis between companies, or between periods, for the same company. However, if companies use different accounting methods, any comparison may not be exact. …

Retained earnings are the cumulative net profits or profits of a business after payment of dividends. Retained earnings are the net earnings after dividends that are available to be reinvested in the business or to pay off debt. Since they represent the remainder of a company’s unpaid profits as dividends, they are often referred to …