A trial balance is an internal accounting statement prepared to check the accuracy of the company’s accounting records. As the “trial” on its name suggests, it is made to check if there are errors committed during the accounting process, which involves journalizing and posting … [Read more...]
How to Post Journal Entries to the General Ledger
After journalizing your business transactions, that is, recording them in the general or special journals, the next step is to post those journal entries in the general ledger accounts. To learn about recording transactions in the general journal, please read our previous article … [Read more...]
October 2011 CPA Board Exam Results and List of Passers
On October 8-9 and 15-16, 2011, at the cities of Manila, Baguio, Cagayan de Oro, Cebu, Davao, Iloilo and Legazpi, the Certified Public Accountants (CPA) board exams were held. Usually, the Professional Regulation omission (PRC) releases the CPA board results just the day after … [Read more...]
What are Notes to Financial Statements and their Purpose?
What are notes to financial statements and what is their purpose? The financial statements tell us about the important financial information of a certain business or entity which also help us make more informed judgments, such as whether we should infuse more capital or not to … [Read more...]
What is a Statement of Changes in Equity and its Purpose?
What is a statement of changes in equity and what is its purpose? A statement of changes in equity is a separate component of financial statements. It presents an entity’s total comprehensive income for the period (profit or loss plus other comprehensive income for the period), … [Read more...]
What is a Cash Flow Statement in Business?
What is a cash flow statement and what is it for? The statement of cash flow, together with the balance sheet (statement of financial position), statement of comprehensive income (income statement), statement of changes in equity, and accompanying explanatory notes to financial … [Read more...]