Relationship Between Income Statement and Balance Sheet
The undistributed profit goes into retained earnings. This is the most direct relationship between income statement and balance sheet.
Finance
Income Statement: the Formula that Tells if We Make a Profit or Loss
To know whether your biz makes a profit, you have to understand Income Statement - the formula that tells if you make a profit or loss.
Understanding Balance Sheet: A Comprehensive Guide for Beginners
Assets equal Liabilities plus Shareholders' Equity. But what can this equation and all the information on Balance Sheet tell us? Read this guide to learn the basics.
Shareholder's Equity: the Last Piece on Balance Sheet
Learn about the structure of shareholder's equity, and how capital stock, additional paid-in capital, surplus reserve, and retained earnings work.
Liabilities: Current and Noncurrent
A company will classify liabilities within 12 months as current and beyond 12 months as Noncurrent. Read to learn more.
Fair Value vs. Historical Cost: Rules, Applications, and Exceptions
Knowing the total worth of your assets on the balance sheet is important. But what number should you use? Fair value or historical cost?
Analyze Balance Sheet to Understand How Companies Work
Understanding how companies work by reading balance sheet. Compare manufacturing, service, pro sports, and agricultural companies.
Understanding Assets on the Balance Sheet
To clearly describe the economic activities of a company, a company first
The Importance of Financial Statements and Why We Need Them
Sharing my learning on Financial Analysis and Decision Making. Financial Statements help us understand the economic activities in a business.