People deal with securities in different ways and purposes, whether these are debt securities, equity securities or derivative contracts. We utilize securities for investing purposes, like when we invest in shares of stocks to earn a percentage of the corporation’s profit or to … [Read more...]
What are Securities in Finance?
We always read the term securities from financial and investing books. We always hear them from business and economic news. If we take a look on some financial statements of publicly listed companies, we can see securities. So what are securities or what is a security in terms of … [Read more...]
How to Make a Statement of Changes in Owner’s Equity
The statement of changes in owner’s equity is a separate component of financial statements for a sole or single proprietorship business. It presents how the capital shown in the balance sheet equity section changes over a period of time. It also shows the effects on the capital … [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 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 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...]