Financial Accounting

Fixed assets are permanent and long-term assets sources of a firm which are being used for carrying out the business operations.

Trial balance is a statement which takes into account all the debit and credit balances from the ledger accounts. It is prepared in order to verify whether the balance of debit side is same as that of the credit side. Trial balance can also be defined as a statement consisting of balances of different ledger accounts

As balance sheet and income statement provides only limited information, it is necessary to prepare a statement which shows the changes in both assets and liabilities of the firm during a specified period of time. Such a statement is known as a funds flow statement or statement of sources and application of funds or statement

Working capital is required by the firm for the purpose of purchasing raw materials, payment of wages and other routine expenses, etc. It is required for financing current assets such as cash, marketable securities, debtors and inventories.

A cash flow statement explains the inflows and outflows of cash and cash equivalents during a specified period of time. Such inflows and outflows are classified into operating investing and financing activities during a particular period of time.

Single entry system is actually an incomplete state of a double entry system. It is also known as “Incomplete Records System”.