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What are the Purpose and objectives in financial statement?
The main objective of financial statements is to provide relevant and reliable information about the financial performance and position of an entity to a wide range of users to assist them in forming their economic decisions. For example, investors require financial statements to judge the profitability of their investments. Lenders require them to assess the credit worthiness of potential clients. Management requires financial statements to manage the affairs of the company in the interest of shareholders. Government may require financial statements to assess the accuracy of tax returns.
What is the difference between proforma financial statements and projected financial statements?
Pro forma financial statements are based off of historical statements and include a select few changes or exclusions "as a matter of form" (hence the name). For example, addition of debt or exclusion of extraordinary one-time expense. "Projected financial statements" (aka projections) can be made from scratch and are based off of many different assumptions, few or none of which are based on actual performance. Hope this helps! Source: my recent completion of a formal commercial bank credit training program.
Is letter of credit a financial instrument?
A letter of credit is a financial instrument. It should be treated as such and guarded like you would a credit or debit card.
How does the description of accounting as the language of business relate to accounting as being useful for investors and creditors?
creitors are the persons who have extended credit to the company.they are also interested in the financial statements because they wiil help them in ascertaining whether the enterprise will be in a position to meet its commitment towards them both regarding payment of interest and principal... investors: a person who is contemplaing an investment in a business will like to know about its profitability and financial position.a study of the financial statements will help them in this respect
Is an application for credit considered a source document?
A source document is one that originates and provides proof of a financial transaction. My guess is if the amount approved is not indicated on there it is considered correspondence. For bookkeeping purposes though, the source document would be specific check or credit card indicating the amount of credit.
Is an unrealized gain recorded as a debit or credit on financial statements?
An unrealized gain is recorded as a credit on financial statements.
Is an increase in expense recorded as a debit or credit on the financial statements?
An increase in expense is recorded as a debit on the financial statements.
What criteria are required in a Credit Review Process for Business loan?
Depending on the lender, the credit review process could vary. However, there are certain elements that are almost always included in the business credit review process. These include: personal background checks, a personal resume, a business plan, a business credit report, income tax returns, financial statements, bank statements, collateral (often required for businesses without financial statements), and legal documents, including licenses and registrations.
What are the Rebuttal statements for credit card collections?
rebuttal statements do you have any application in your mobile?
Is a decrease in accounts payable recorded as a debit or credit on the financial statements?
A decrease in accounts payable is recorded as a debit on the financial statements.
What has the author Alexander Wall written?
Alexander Wall has written: 'Student Oriented Curriculum Asking the Right Questions' 'Ratio analysis of financial statements' -- subject(s): Accounting, Banks and banking, Credit, Financial statements 'How to evaluate financial statements' -- subject(s): Accounting, Credit, Financial statements, Industrial statistics, Ratio and proportion 'Analytical credits' -- subject(s): Accessible book, Credit
What information will be required for an application for business credit cards?
The information that will be required for an application for business credit cards is type of business you do and your income.
What steps are required to obtain pre loan approval for a mortgage?
To obtain pre loan approval for a mortgage, you typically need to provide financial documents such as income statements, tax returns, and credit history. You will also need to fill out an application and possibly pay an application fee. The lender will then review your information to determine how much you can borrow.
Where do you find credit purchases in financial statements?
Credit purchases are shown in income statement as a part of total purchases.
What are the basic benefits and purposes of developing pro forma statements and cash budgets?
The pro-forma financial statements and cash budget enable the firm to determine its future level of asset needs and the associated financing that will be required. Futhermore, one can track actual events against the projections.Bankers and other lenders also use these financial statements as a guide in credit decisions.
Why are there no debit or credit columns on financial statements?
because the inside column on financial statements is used for subtotaling
How to disclose outstanding letters of credit in financial statements?
it is the credit guarantee issued against the procurement of goods and services from other countries..
