Tag Archives: #ExpenseForecast

Q20.16 What are the objectives of preparing financial statements ?

Preparing financial statements Website Link: Preparing financial statements: The objectives of preparing financial statements are as follows: 1.Providing Information: Financial statements aim to provide relevant and reliable information about the financial performance, position, and cash flows of an entity. They offer insights into the organization’s financial activities, enabling stakeholders to make informed decisions. 2.Assessing Performance:… Read More »

How to prepare projected and estimated balance sheet?

Estimated Balance Sheet Preparing projected and estimated balance sheet, one must anticipate the financial standing of a business at a future date by using projected information and assumptions. Here are the steps to prepare a projected and estimated balance sheet: 1. Gather Relevant Data: Collect historical financial statements, including balance sheets, income statements, and… Read More »

Q20.3 Preparation of projected income statement ?

Preparation of projected income statement Preparation of projected income statement Website link Preparation of projected income statement: The preparation of a projected income statement, it is necessary to predict the anticipated revenues, expenses, and net income for a specific time period in the future. Here are the steps to Preparation of projected income statement:: 1.Sales… Read More »

What are the differences between revenues and expenses?

Revenues vs Expenses Revenues vs Expenses are two important terms in accounting and finance, and they are use to measure the financial performance of a business. It is the income earn by a business from the sale of goods or services. It is the money that flows into the business as a result of its… Read More »

What is the difference between income statement and profit & loss account?

Difference between income statement and profit & loss account The terms “income statement” and “profit and loss account” are often used interchangeably to refer to a financial statement that summarizes a company’s revenues and expenses during a specific period of time. However, in some contexts, there may be a subtle difference in meaning. In general,… Read More »