WHAT ARE CURRENT ASSETS? Current assets are assets: that are expected to be realised in, or is held for sale or consumption in, the normal course of the enterprise’s operating cycle ; or is held primarily for trading purposes or for the short term and expected to be realised with twelve months of the balance … Read more
WHAT IS A BALANCE SHEET? A Balance Sheet is a snapshot of the financial position of an entity. This snapshot is at a point of time. Say, as at 7 May 2006, you look at Company A’s balance sheet, it reflects the financial position as at that day. After that day, the financial position company … Read more
PROFIT Profit is when the Income exceeds Expenses (Loss is when Income is lesser than Expenses). Therefore, profit is the residual amount that remains after expenses have been deducted from income. The profit shown in the Income Statement are based on the Accrual and Matching Concepts and not on cash basis. ( Refer to my … Read more