Financial Accounting

๐ˆ๐ฌ ๐๐ž๐ญ๐ญ๐ฒ ๐‚๐š๐ฌ๐ก ๐€๐ง ๐„๐ฑ๐ฉ๐ž๐ง๐ฌ๐ž ๐Ž๐ซ ๐€๐ฌ๐ฌ๐ž๐ญ ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ

๐๐ž๐ญ๐ญ๐ฒ ๐‚๐š๐ฌ๐ก ๐ˆ๐ฌ ๐€๐ง ๐€๐ฌ๐ฌ๐ž๐ญ ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ

Is Petty Cash An Expense Account or Asset Account? Petty Cash is not an expense account, it is an asset account.

๐๐ž๐ญ๐ญ๐ฒ ๐‚๐š๐ฌ๐ก ๐ˆ๐ฌ ๐€๐ง ๐€๐ฌ๐ฌ๐ž๐ญ ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ Read More ยป

Free cash flow vs cash flow

๐…๐ซ๐ž๐ž ๐‚๐š๐ฌ๐ก ๐…๐ฅ๐จ๐ฐ ๐•๐ฌ ๐‚๐š๐ฌ๐ก ๐…๐ฅ๐จ๐ฐ- ๐‡๐จ๐ฐ ๐“๐ก๐ž๐ฒ ๐ƒ๐ข๐Ÿ๐Ÿ๐ž๐ซ?

Free Cash flow & Cash flow. FCF is used for the valuation of an enterprise while CF is used to calculate an organizationโ€™s net cash flow

๐…๐ซ๐ž๐ž ๐‚๐š๐ฌ๐ก ๐…๐ฅ๐จ๐ฐ ๐•๐ฌ ๐‚๐š๐ฌ๐ก ๐…๐ฅ๐จ๐ฐ- ๐‡๐จ๐ฐ ๐“๐ก๐ž๐ฒ ๐ƒ๐ข๐Ÿ๐Ÿ๐ž๐ซ? Read More ยป

cash basis vs accrual basis accounting

๐’๐ก๐จ๐ฎ๐ฅ๐ ๐ˆ ๐ฎ๐ฌ๐ž ๐œ๐š๐ฌ๐ก-๐›๐š๐ฌ๐ข๐ฌ ๐จ๐ซ ๐š๐œ๐œ๐ซ๐ฎ๐š๐ฅ ๐š๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ ?

๐’๐ก๐จ๐ฎ๐ฅ๐ ๐ˆ ๐ฎ๐ฌ๐ž ๐œ๐š๐ฌ๐ก-๐›๐š๐ฌ๐ข๐ฌ ๐จ๐ซ ๐š๐œ๐œ๐ซ๐ฎ๐š๐ฅ ๐š๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ ? Cash basis vs accrual basis accounting?ย Ahh! Confusing- what are they? Why and how Cash basis accounting is different from accrual basis accounting? Which is the most appropriate accounting method- cash accounting or Accrual Accounting?ย  Looking for the answers to these complicated questions? Then you are at the right

๐’๐ก๐จ๐ฎ๐ฅ๐ ๐ˆ ๐ฎ๐ฌ๐ž ๐œ๐š๐ฌ๐ก-๐›๐š๐ฌ๐ข๐ฌ ๐จ๐ซ ๐š๐œ๐œ๐ซ๐ฎ๐š๐ฅ ๐š๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ ? Read More ยป

Accrual Accounting

๐€๐œ๐œ๐ซ๐ฎ๐š๐ฅ ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ - ๐„๐ฑ๐ฉ๐ฅ๐š๐ข๐ง๐ž๐ ๐“๐ฒ๐ฉ๐ž๐ฌ ๐จ๐Ÿ ๐€๐œ๐œ๐ซ๐ฎ๐š๐ฅ๐ฌ

Accrual accounting is an accounting method that records revenues and expenses when they incur- same accounting period.

๐€๐œ๐œ๐ซ๐ฎ๐š๐ฅ ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐ - ๐„๐ฑ๐ฉ๐ฅ๐š๐ข๐ง๐ž๐ ๐“๐ฒ๐ฉ๐ž๐ฌ ๐จ๐Ÿ ๐€๐œ๐œ๐ซ๐ฎ๐š๐ฅ๐ฌ Read More ยป

Cash Accounting

๐‚๐š๐ฌ๐ก ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐  ๐’๐ญ๐ž๐ฉ-๐›๐ฒ-๐’๐ญ๐ž๐ฉ ๐’๐จ๐ฅ๐ฏ๐ž๐ ๐„๐ฑ๐š๐ฆ๐ฉ๐ฅ๐ž

Cash Accounting method only considers two kinds of transactions- cash inflows & outflows. It doesn’t recognize any payables, and receivables.

๐‚๐š๐ฌ๐ก ๐€๐œ๐œ๐จ๐ฎ๐ง๐ญ๐ข๐ง๐  ๐’๐ญ๐ž๐ฉ-๐›๐ฒ-๐’๐ญ๐ž๐ฉ ๐’๐จ๐ฅ๐ฏ๐ž๐ ๐„๐ฑ๐š๐ฆ๐ฉ๐ฅ๐ž Read More ยป

free cash flow

๐–๐ก๐š๐ญ ๐ข๐ฌ ๐…๐ซ๐ž๐ž ๐‚๐š๐ฌ๐ก ๐…๐ฅ๐จ๐ฐ (๐…๐‚๐…) ๐š๐ง๐ ๐‡๐จ๐ฐ ๐ญ๐จ ๐‚๐š๐ฅ๐œ๐ฎ๐ฅ๐š๐ญ๐ž ๐ˆ๐ญ?

Free Cash Flow (FCF) indicates that a company is financially sound, and it has the ability to grow and pay its debts and dividends.

๐–๐ก๐š๐ญ ๐ข๐ฌ ๐…๐ซ๐ž๐ž ๐‚๐š๐ฌ๐ก ๐…๐ฅ๐จ๐ฐ (๐…๐‚๐…) ๐š๐ง๐ ๐‡๐จ๐ฐ ๐ญ๐จ ๐‚๐š๐ฅ๐œ๐ฎ๐ฅ๐š๐ญ๐ž ๐ˆ๐ญ? Read More ยป

how do changes in working capital impact cash flows

๐‡๐จ๐ฐ ๐ƒ๐จ ๐‚๐ก๐š๐ง๐ ๐ž๐ฌ ๐ข๐ง ๐–๐จ๐ซ๐ค๐ข๐ง๐  ๐‚๐š๐ฉ๐ข๐ญ๐š๐ฅ ๐ˆ๐ฆ๐ฉ๐š๐œ๐ญ ๐‚๐š๐ฌ๐ก ๐…๐ฅ๐จ๐ฐ?

The “impact” relates to how the cash flow has changed when there is positive and negative fluctuation in working capital.

๐‡๐จ๐ฐ ๐ƒ๐จ ๐‚๐ก๐š๐ง๐ ๐ž๐ฌ ๐ข๐ง ๐–๐จ๐ซ๐ค๐ข๐ง๐  ๐‚๐š๐ฉ๐ข๐ญ๐š๐ฅ ๐ˆ๐ฆ๐ฉ๐š๐œ๐ญ ๐‚๐š๐ฌ๐ก ๐…๐ฅ๐จ๐ฐ? Read More ยป

Cash Flow vs. Profit

๐‚๐š๐ฌ๐ก ๐…๐ฅ๐จ๐ฐ ๐ฏ๐ฌ. ๐๐ซ๐จ๐Ÿ๐ข๐ญ: ๐’๐š๐ฆ๐ž ๐จ๐ซ ๐ƒ๐ข๐Ÿ๐Ÿ๐ž๐ซ๐ž๐ง๐ญ ๐…๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐Œ๐ž๐ญ๐ซ๐ข๐œ๐ฌ?

Cash flow vs. Profit- Cash Flow represent the liquidity of the company while profitability represents the income and expenses of the company.

๐‚๐š๐ฌ๐ก ๐…๐ฅ๐จ๐ฐ ๐ฏ๐ฌ. ๐๐ซ๐จ๐Ÿ๐ข๐ญ: ๐’๐š๐ฆ๐ž ๐จ๐ซ ๐ƒ๐ข๐Ÿ๐Ÿ๐ž๐ซ๐ž๐ง๐ญ ๐…๐ข๐ง๐š๐ง๐œ๐ข๐š๐ฅ ๐Œ๐ž๐ญ๐ซ๐ข๐œ๐ฌ? Read More ยป

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