Accounting / July 27, 2018 / Holly Mercer
A cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. It captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization.
Net Working Capital It implies the surplus of current assets over current liabilities. A positive net working capital shows the company’s ability to cover short-term liabilities, whereas a negative net working capital indicates the company’s inability in fulfilling short-term obligations.
In accounting, journals are used to record similar activities and to keep transactions organized. One of the journals is a cash receipts journal, a record of all of the cash that a business takes in. It is reserved specifically for activities that involve receiving cash. In most businesses, there are cash receipts of some type. You may sell items or provide services that people pay for with cash, which may range from food or books to massages or even a ride in a taxicab.
An adjusted trial balance is formatted exactly like an unadjusted trial balance. Three columns are used to display the account names, debits, and credits with the debit balances listed in the left column and the credit balances are listed on the right.
In Case You Missed It