Day: January 25, 2022

Where the available records are so deficient (i.e. it is impossible to compile a reasonable complete cash summary, the only method of estimating the profits or loss for the period, is to prepare statement of affairs showing the net worth Read More …

INTRODUCTION An incomplete record situation is whereby, the accounting system falls short of the double entry. This may be due to: Lack of records at all; or Insufficient records that will facilitate the preparation of final accounts. Reasons for incomplete Read More …

Cash flow statements have many uses other than the legal need for some companies to prepare them. A few cases where a business might find them useful is answering such questions as below Small businessman may want to know why Read More …

Cash flow statement summaries the cashbook, by reconciling the opening and closing balance of the cash and cash equivalents. Cash equivalents refer to liquid assets which can easily be transferred into cash and include; Cash Demanded deposits in banks Short Read More …

Users of financial statements, require understanding how the business generated cash and how the cash was used. Unlike the income statement where profit reported is influenced by accounting policies and estimates, cash flow indicate the performance of the business enterprise Read More …

INTRODUCTIONS A business enterprise normally prepares the following two financial statements Profit or loss or income statement which helps to find out the profit or loss made as result of operations of the company over a specified period. Balance sheet Read More …