The following are sample balance sheet (statement of financial position), income statement, and statement of changes in owner’s equity for an individual or sole proprietorship business. These sample financial statements are actually the ones we have discussed and prepared in our … [Read more...]
How to Prepare a Balance Sheet (Statement of Financial Position)
The balance sheet or the statement of financial position is one of the major components of financial statements, which include the income statement, statement of cash flow, statement of changes in equity and the notes to financial statements. The balance sheet gives readers of … [Read more...]
What is a Balance Sheet or Statement of Financial Position?
What is a balance sheet or a statement of financial position? Among the five components of a complete set of financial statements (i.e., balance sheet, statement of comprehensive income (income statement), statement of cash flow, statement of changes in equity and notes to … [Read more...]
What are Financial Statements of a Business?
If you’re a business owner and you’re filing your annual income tax, you might be required to attach a financial statement to your income tax return. Likewise, if you are applying for a business loan in your local bank, you will also be required to submit your financial … [Read more...]
What is the Accounting Equation and How Does It Work
What is an accounting equation? This is the relationship expressed between the three basic accounting elements in the balance sheet or statement of financial position i.e., assets, liabilities and equity. All accounting or financial information is recorded within the framework of … [Read more...]