Bookkeeping

It disregards anomalies or external factors, focusing only on the core business functions. While revenue signals potential profitability, COGS is the pinch that reminds businesses of the cost of doing business. The purpose of a P&L statement is to provide information about a company’s overall ability to generate profit, either…

A company’s operating cash flow is a key qualitative characteristics of financial statements metric in assessing the financial viability of its core operations. This purchase will entail an increase in assets (equipment) and a liability (credit purchase) for the amount of $2,000. The company’s assets would then equal its liabilities…