Types of Reserves There are typically two types of reserves that can appear on a corporate balance sheet: revenue reserves and capital reserves. Revenue reserves are create from profits earn by the company and not distributed as dividends to shareholders. These reserves can be used for a variety of purposes, such as reinvesting in… Read More »
What happens when liabilities exceed assets When a company’s liabilities exceed its assets, it is known as a negative net worth or insolvency. This means that the company’s debts are greater than the total value of its assets. For more information to visit https://www.mca.gov.in In such a situation, the company may face serious financial difficulties… Read More »
Expenses Exceeding Revenues Income Statement An income statement, also called a profit and loss statement, summarizes a company’s revenues, expenses, and profits for a given period. It is one of the core financial statements used to assess the profitability and operational efficiency of a business. Here’s a basic structure of an income statement: Revenues (or… Read More »
