Key Financial Statements: Income, Balance Sheet, Cash Flow

Posted by on Jan 12, 2025 in Accounting and Finance | 0 comments

Key Financial Statements

The Income Statement

Also known as the profit and loss account, the profit statement, the income and expenditure statement, or the receipts and payments account.

The Balance Sheet

Also known as the statement of financial position.

The Cash Flow Statement

Shows what cash came in and what cash went out over a period of time.

  • Two accounting elements which appear in the income statement:
    • Expenses
    • Income
  • Three accounting elements which appear in the balance sheet:
    • Assets
    • Liabilities
    • Equity

The

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Accounting Entries: Merchandise, VAT, Bills of Exchange, and More

Posted by on Jan 8, 2025 in Accounting and Finance | 0 comments

Closing Balance of Merchandise and Changes in Inventories

  • 300 Merchandise A | 880 | A, Value of merchandise at the end of this year
  • 610 Changes in inventories of merchandise | 800 | E
  • 300 Merchandise A | 80 | A, Value of merchandise at the end of last year

Company Buys Merchandise for €40,000 (Plus 21% VAT), on Credit

  • 600 Merchandise purchased | 40,000.00 | A, Value of merchandise
  • 472 Input VAT | 8,400.00 | A
  • 400 Suppliers | 48,400.00 | L, Amount owed to suppliers

Sale of Merchandise, Customer Accepts

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EU Policies, Balance of Payments, and Exchange Rates

Posted by on Jan 7, 2025 in Accounting and Finance | 0 comments

EU Policies

Regional Policy

Aims to reduce the differences between regions within member countries.

Social Policy

Coordinated through the European Social Fund (ESF) and is intended to support the employment of the unemployed.

Implemented through:

  • Structural Funds: Cover the costs of infrastructure, social spending, and agricultural subsidies.
  • The EAGGF Guarantee: Designed to maintain the income of farmers.
  • The Cohesion Fund: Bridges the differences in prosperity between the countries of the EU.

Balance of

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