Does a Dividend Reduce Profit? (The answer is “No”)

What Are Dividends? Dividends are a share in a company’s profits paid to shareholders. These payments may come directly from its profits during a year or from retained earnings. Usually, dividends come in the form of cash. But it may also cover share distribution or other benefits. Regardless of how investors get paid, dividends include … Read more

What Is The Condensed Financial Statement?

Introduction Companies commonly arrange a condensed financial statement along with the customary financial statements. The core groundwork on these documents serves various legal commitments and is usually associated with an episodic audit. Nevertheless, except for substituting comprehensive financial statements, condensed financial statements turn out to be the additional documents or authentic supplementary papers essential during … Read more

What are the 4 Types of Financial Statements?

A financial statement is simply a snapshot of your business finances. It is a financial document that summarizes the financial position of a business entity and includes an analysis of its performance over time. As with any business analysis, a financial statement is only as good as the information and data available. The accountant’s responsibility … Read more

What is a Budgeted Balance Sheet and How to Prepare It?

The budgeted balance sheet is just like a balance sheet, i.e., it contains all the assets, liabilities, payables, capital depreciation, amortization, etc, exactly like a balance sheet, but there is one big difference and that is that the budgeted balance sheet, unlike the balance sheet, presents the future balance sheet. In contrast, a balance sheet … Read more

Lender of Last Resort – What Is It? And How Does It Work?

The lender of last resort is usually central banks that offer loans to banks and financial institutions that are facing financial difficulty or are considered highly risky. In the United States, the Federal reserve bank acts as a lender of last resort to institutions that do not have alternative means of borrowings, and failing such … Read more