We’ve discussed owner’s equity in I Own What? Travel Professionals and Owner’s Equity.
We’ve talked about liabilities in I Owe How Much?! Liabilities, Accounts Payable, and Travel Agents, and we’ve chatted about assets in Hey! When do I get paid? Travel Agents, Assets, and AR.
Exciting stuff I know, but having even a cursory understanding of those three things will help you to understand exactly what’s going on in your business:
Assets, Liabilities, and Owner’s Equity.
Those three things make up one of the staples of what we accountants call financial statements.
Financial statements are sets of reports in a specific format that offer information about an organization’s activities. [Read more...]