Difference between Cashflow Statement and Cash Budget The distinction between cash flow statement and cash budget is given below: Difference # Cashflow Statement: 1. The cash flow statement shows the cash inflows and outflows relating to the firm’s operating, investing, and financing activities. The preparation of the cashflow statement is […]
*What is financial planning, and what is its purpose? Financial planning is managing one’s finances to achieve specific life goals, both in the short and long term. It involves assessing current economic status, setting goals, and making a roadmap to achieve those goals by adequately managing income, expenses, investments, and assets. […]
*What are dividends, and how does it work? Dividends are payments made by a corporation to its shareholders, typically in the form of cash or additional shares of stock. They represent a portion of the company’s profits circulated to shareholders as a reward for their investment. Here’s how dividends work: Declaration: […]
What is bankruptcy? For partnerships, declaring bankruptcy means each partner declares personal bankruptcy for themselves. The partnership’s debt will be written off, but the individual partners could be liable for them. Partnerships are recognized arrangements between two or more parties to manage and operate a business. Theoretically, a partnership is not […]