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Corporate Finance Bachelor - Essay Example

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Corporate Finance Bachelor

The difference is net income and net loss.
This statement shows changes in owner's capital account during the accounting cycle. The capital account shows how much does the owner owns; owner can reinvest in the business which is added in capital account, s/he can withdraw capital which is also termed as drawings and is subtracted from the capital account.
Balance Sheet shows how much your company own, owe and your company's equity. Balance Sheet is based on equation: Assets = Liabilities + Equity. Balance Sheet provides a snapshot of the company at a specific time, usually end of accounting cycle and this is also known as statement of financial conditions.
It list down all cash inflow (money coming in the company) and all cash outflow (money going out of the company) by categorizing them into revenues, long-term financing, sales of non-current assets, increase in current liability account and decrease in current assets account.

Reference
Common Fi ...Show more

Summary

Throughout the fiscal year accountants record, organize and keep track of all transactions of a company. At the end of the fiscal year, which is also known as the accounting cycle, accountants use this information to prepare the financial statements. There are four common financial statements:
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Corporate Finance Bachelor Essay essay example
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