How do you work out retained earnings? What has retained earnings? Usually calculated at the end of each financial year by doing the profit and loss account and then deducting any dividends paid out. Then the balance is carried forward to the following year and shown in the balance sheet. Usually, […]
*Gross profit and stock valuation Gross profit is shown in the income statement as a figure after deducting all the associated costs in producing your product or services from the sales that are called the gross profit. In another format, Gross profit= Sales- Cost of goods. After calculating the gross profit, […]
Financial ratios are part of monitoring Budget and cash flow An economic rate requires reasoning the connection between two figures and asserting the meaning of that correlation. Financial ratios used to compare the past performance with actuals help in the forecasting of budget and cash flow. There are four types of […]
Classification of ledger accounts When entering the business transaction into five types of accounts becomes the classification of accounts is as follows. And some accounts of these are balance sheet accounts and income statement accounts. Assets Liability Revenue Expenses account Equity account. Withdrawal’s account Accounting categories and their role Asset Account […]