It is one of the category that I have never thought about getting to know it.
I am just not a huge fan of putting money in order. (not only in money though XD)
For me, it will be a trouble to do all the counting and documenting.
The God gives everyone at least one talent, I guess "Accounting" is not the one I would get.
However, if I want to own a business, accounting is definitely a field that I have to cross.
So, there we go!! Here is what I have learned today:
Main Financial Statement
1. Balance Sheet:
- Assets, liabilities and ownership equity are listed as of a specific date.
- The only statement which applies to a single point in time.
- A formula : Amount of assets = total liabilities + total amount of shareholder's equity.
- To perform a company's operating conditions
2. Income Statement:
- Show the company made or lost money during the period being reported.
3. Cash Flow Statement:
- Displayed in the specified period (usually one month season. Is mainly one-year annual reports) of cash inflows and outflows of financial reports.
- Determine the company's short-term viability, especially the ability to pay bills.
Hoo.........I think it's enough for today!!
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