Explain financial statements Which financial statement to analyse(only 1) Ratios Journal entry(prepaid) Golden rules of accounting How many iphones used in India

Question

Accepted Answer

Financial statements are reports that show the financial performance of a company. The most important statement is the income statement.

Financial statements are used to analyze a company's financial performance
The income statement shows a company's revenue and expenses over a period of time
Ratios can be used to analyze a company's financial health
A prepaid journal entry is used to record an expense that has been paid in advance
The golden rules of accounting are: debit the receiver, credit the giver; debit what comes in, credit what goes out; and debit expenses and losses, credit income and gains

Accepted Answer

Financial statements - income, balance sheet and cashflows

Ratio- current ratio= current assets/current liabilities tell us the liquidity condition of the firm.

Golden rules- Personal accounts is debit the benefit receiver and credit the giver

Nominal account - debit all expenses and losses credit all incomes and gains

Real account- debit what comes in and credit what goes

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Explain financial statements Which financial statement to analyse(only 1) Ratios Journal entry(prepaid) Golden rules of accounting How many iphones used in India

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