The financial status of the company indicates the amount of resources they have and also bills for those precious resources at any time. Claims are also called stocks. Therefore, companies are known as a combination of economic resources and stocks. Economic resources = stock. What mater what business, we have two different kinds of stocks for every company. They are the creditors' equity and the owner's equity. In another way, economic resources = creditors stock + owner's stock. When using accounting language, is the economic resource that the company has at a particular time is called an asset? On the one hand there is a company known as a debt amount of creditors' equity. So here is a better standard equation known as accounting or accounting equation: asset = liability + shareholders' equity. As with algebraic equations, both sides of the equation must be equal. This formula is useful for analyzing the financial effect of your daily business activities. Let's talk about a very important concept of every business. The assets are known as economic resources where business is expected to generate money for them in the future. Some examples are real estate and other properties owned by business, so that they can lend to people. It will be what is known as accounts receivable which is an item of finance than if the business owes money. However, there are some assets that are not physical. Some examples are copyrights, trademarks, and patents, but they are still very valuable to business. Then the liability is the obligation that the business has, such as paying cash, providing future services for individuals, or transferring assets to another entity. These are known as the business debt or the money they borrow in the near future. All of these are included in accounts payable. As a result, the train disappeared finally, so that it is not a lot of debt so that claims of debt obligations can be seen. The law gives the creditors (people to bear the money) the right to press sales of the company's assets unless they pay their debts in time. Creditors have tons of rights to owners and they have to pay the full amount even before the owner receives something. Consuming on all of the company's resources is very possible for liabilities. Next, the owner's equity shows the request to make about the assets owned by the owner of the business. It is the remaining assets of the company after deducting the residual gain or the amount of corporate debt. Here is the equalization for the owner's equity. Owner equity = assets - liabilities. The equity of the owner within a certain stock is said to be equity equity, so the equalization then seems like this. Shareholders 'equity of assets = liabilities + shareholders' equity contributes to the two parts capital surplus retained. Shareholders' equity = contribution capital + retained earnings. The amount that individual shareholders put in business is known as the capital that contributed. Donated capital is usually divided into separate parts known as par value, "nominal amount" and "additional amount paid to capital". "Retained earnings is the amount of shares earned by shareholders from business income generating activities that are held for future use by the business Retained earnings are divided into three types: revenue, expenses, and dividends Transactions of the company will be affected by transactions of the increase or decrease of the stock acquisition knowledge and revenue and expenses as we are going to do business in the future or not whether it is online or offline respectively If perfect for those who are operating expenses beyond online Your own website is your domain name and hosting service Another example is that customers agree to pay for services in the near future in the company.Money is accounted for by accounts receivable Increasing the value of the asset is recorded to reduce the amount of stock owners stock, which is an example of revenue But if the company promises to provide services in the future rather than it is known as cost, when this happens the asset decrease (accounts receivable) and debt (accounts payable) will increase, which is quite considerable Is this a good meaning? When revenue exceeds cost this is good, and on the one hand and expenses are greater than income When this is losing business, or your business refers to dividends, past earnings Please do not confuse dividends and expenses as they reduce the amount of both retained earnings.The surplus retains expenses from the collected net income or revenue The financial statements are the main way to communicate information about the business to people who have several types of interest to it. With this kind of business model as thought so far it does not apply to the contents of the company's efforts and it there, but like the various methods and models, the financial statements There are four main financial statements, which are the income statement, the statement of retained earnings, the balance sheet, and the cash flow statement.While the income statement is incomplete What we do summarizes earned income, money made, and money deducted from expenses and business.Many accountants are required to make sure that the business has achieved its profitability targets, I believe that this is an important financial report.Then we are a statement of retained earnings which will display retained earnings over a certain period of time. The time when the retained earnings become zero is when the company first started in their accounting period. Many companies use statements of shareholders' shares as a substitute for retained earnings. This is a more detailed statement, as it will show not only aspects of retained earnings, but also it shows a change in shareholders equity account. Next, the financial situation of the business on a particular day is usually the balance sheet at the end of the month or the year. The balance sheet displays the value of the business in response to those assets that are assets, liabilities and shareholders' equity. Finally, the statement of cash flow is directed to corporate liquidity measures. They are basically streams and corporate cash outflows. Net cash flow is the subtraction between inflow and outflow of money. In the cash flow statement, funds generated by simply operating the business are also displayed, and investment and financial transactions occurring in a specific fiscal period are also displayed
I came to love that accounting equation
The financial status of the company indicates the amount of resources they have and also bills for those precious resources at any time. Claims are also called stocks. Therefore, companies are known as a combination of economic resources and stocks. Economic resources = stock. What mater what business, we have two different kinds of stocks for every company. They are the creditors' equity and the owner's equity. In another way, economic resources = creditors stock + owner's stock. When using accounting language, is the economic resource that the company has at a particular time is called an asset? On the one hand there is a company known as a debt amount of creditors' equity. So here is a better standard equation known as accounting or accounting equation: asset = liability + shareholders' equity. As with algebraic equations, both sides of the equation must be equal. This formula is useful for analyzing the financial effect of your daily business activities. Let's talk about a very important concept of every business. The assets are known as economic resources where business is expected to generate money for them in the future. Some examples are real estate and other properties owned by business, so that they can lend to people. It will be what is known as accounts receivable which is an item of finance than if the business owes money. However, there are some assets that are not physical. Some examples are copyrights, trademarks, and patents, but they are still very valuable to business. Then the liability is the obligation that the business has, such as paying cash, providing future services for individuals, or transferring assets to another entity. These are known as the business debt or the money they borrow in the near future. All of these are included in accounts payable. As a result, the train disappeared finally, so that it is not a lot of debt so that claims of debt obligations can be seen. The law gives the creditors (people to bear the money) the right to press sales of the company's assets unless they pay their debts in time. Creditors have tons of rights to owners and they have to pay the full amount even before the owner receives something. Consuming on all of the company's resources is very possible for liabilities. Next, the owner's equity shows the request to make about the assets owned by the owner of the business. It is the remaining assets of the company after deducting the residual gain or the amount of corporate debt. Here is the equalization for the owner's equity. Owner equity = assets - liabilities. The equity of the owner within a certain stock is said to be equity equity, so the equalization then seems like this. Shareholders 'equity of assets = liabilities + shareholders' equity contributes to the two parts capital surplus retained. Shareholders' equity = contribution capital + retained earnings. The amount that individual shareholders put in business is known as the capital that contributed. Donated capital is usually divided into separate parts known as par value, "nominal amount" and "additional amount paid to capital". "Retained earnings is the amount of shares earned by shareholders from business income generating activities that are held for future use by the business Retained earnings are divided into three types: revenue, expenses, and dividends Transactions of the company will be affected by transactions of the increase or decrease of the stock acquisition knowledge and revenue and expenses as we are going to do business in the future or not whether it is online or offline respectively If perfect for those who are operating expenses beyond online Your own website is your domain name and hosting service Another example is that customers agree to pay for services in the near future in the company.Money is accounted for by accounts receivable Increasing the value of the asset is recorded to reduce the amount of stock owners stock, which is an example of revenue But if the company promises to provide services in the future rather than it is known as cost, when this happens the asset decrease (accounts receivable) and debt (accounts payable) will increase, which is quite considerable Is this a good meaning? When revenue exceeds cost this is good, and on the one hand and expenses are greater than income When this is losing business, or your business refers to dividends, past earnings Please do not confuse dividends and expenses as they reduce the amount of both retained earnings.The surplus retains expenses from the collected net income or revenue The financial statements are the main way to communicate information about the business to people who have several types of interest to it. With this kind of business model as thought so far it does not apply to the contents of the company's efforts and it there, but like the various methods and models, the financial statements There are four main financial statements, which are the income statement, the statement of retained earnings, the balance sheet, and the cash flow statement.While the income statement is incomplete What we do summarizes earned income, money made, and money deducted from expenses and business.Many accountants are required to make sure that the business has achieved its profitability targets, I believe that this is an important financial report.Then we are a statement of retained earnings which will display retained earnings over a certain period of time. The time when the retained earnings become zero is when the company first started in their accounting period. Many companies use statements of shareholders' shares as a substitute for retained earnings. This is a more detailed statement, as it will show not only aspects of retained earnings, but also it shows a change in shareholders equity account. Next, the financial situation of the business on a particular day is usually the balance sheet at the end of the month or the year. The balance sheet displays the value of the business in response to those assets that are assets, liabilities and shareholders' equity. Finally, the statement of cash flow is directed to corporate liquidity measures. They are basically streams and corporate cash outflows. Net cash flow is the subtraction between inflow and outflow of money. In the cash flow statement, funds generated by simply operating the business are also displayed, and investment and financial transactions occurring in a specific fiscal period are also displayed
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