Three Statement Model
What is a Three Statement Model? A three statement model is nothing but the income statement – cash flow statement- the balance sheet of the organization. The model by …
Financial Accounting
Limitations of Financial Statements
The primary limitation of financial statements is its heavy reliance on historical costs, indifference to inflation, prone to frauds, easily manipulated, etc. Financial statement limitations are relatable with current …
Financial Statement Notes
Financial Statement Notes / Footnotes Financial statement notes are the additional important information apart from the basic 3 financial statements. These notes to financial statements give due clarity to …
Types of Financial Statements
There are 3 basic types of financial statements. We are categorizing another 2 important parts of an annual report as financial statements. Let’s begin our discussion with a small …
Fixed Asset Register
What is Fixed Asset Register? Fixed asset register contains the list of all the fixed assets a business owns. The purpose behind maintaining is to keep track of book …
Fixed Asset
What is Fixed Asset? Fixed asset, in accounting, is defined as a long-term asset having lifespan > 1 financial year and value > capitalizing limit. They are typically bought …
Capitalizing Assets
What is Capitalizing Assets? Capitalizing assets simply means you are carrying an asset to balance sheet. It indicates you purchased an asset, the life of which is more than …
EBITDA
Meaning of EBITDA Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) can be defined as a company’s operating profit without considering factors such as interest, taxes, depreciation, and amortization.
Operating Cash Flow
Meaning of Operating Cash Flow Operating Cash Flow (OCF) is a metric used to test the company’s cash inflow through business. It shows how well a company can produce …
Intangible Assets and its Types
An intangible asset is a useful resource without any physical presence. The assets such as trademarks, copyrights, patents, goodwill etc are intangible assets. You can now understand that such assets produce …