Financial Statements Can Determine Layoff Probability

A Financial statement is a company's resume reflecting the financial activity of the business. There are four key elements that are part of a financial statement. These elements are the balance sheet, income statement, statement of retained earnings, and a statement of cash flow. A balance sheet reports a business' net equity, assets and liability. An income statement states a business' expenses, profits and income over a specific period of time. A statement of retained earnings documents the fluctuations in a business' retained earnings...

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What Are the Basic Accounting Principles?

For every business owner, it is not enough to have just the investment and the workforce to do the job. It is also as important for you to have a hands-on management of your business to make sure that everything goes smoothly and the processes go unhitched. Therefore, it is also necessary for you to have the knowledge of basic accounting principles. Basic accounting principles that have to be learned include: 1. Understanding that the business is a separate entity from the owner. Whatever transactions being entered into by the owner should...

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