TopicTrading profit and loss account and balance sheet questions and answers pdf.
PostedThu, Jul 11th 2019 07:35 AM
The balance sheet is a way to assess your finances in a realistic manner. You need to learn to manage your money so that you have the financial capacity to cope with things that come up in life. Emergencies such as car repairs, a health crisis, or even job loss can be catastrophic if you haven’t saved some emergency money. If you’re properly planning your person finances with retirement in mind, your net worth should be a positive. It should also grow. Look at some of the sample budget sheet templates to get an idea of what it should look like.
Balance sheets are important because they it gives a snapshot of your business. The information it gives to any potential investors or lenders helps them understand how business is functions. It helps them learn about its principal resources are and any threats to its growth. Alongside an incomes statement and balance sheets, potential stakeholders can see trends over time, check ratios and balances. It can even show places where you could put cost-cutting measures in place.