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 »
GST registration If your GST registration application for has been rejected, you should carefully review the reasons provided for the rejection and take corrective action accordingly. The most common reasons for rejection include incomplete or inaccurate information in the application, non-submission of required documents, and failure to respond to queries or notices from the tax… 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 »
Negative retained earnings Negative retained earning is a financial condition where a company’s retained earnings, a component of shareholders’ equity on the balance sheet, show a negative balance. This typically indicates that the company has accumulated more losses than profits over time. While it might sound alarming, understanding the causes, implications, and potential remedies is crucial… Read More »
