In this way, the current accounting period (or any other accounting period) can be made to appear better. Liquidity ratios are needed to check if the company is liquid enough to settle its debts and pay back any liabilities. Horizontal analysis makes it easy to detect these changes and compare growth rates and profitability with […]
Categoría: Bookkeeping
Reconciliation Finance, Definition, Process, Methods
For example, while performing an account reconciliation for a cash account, it may be noted that the general ledger balance is $500,000. Still, the supporting documentation (i.e., a bank statement) says the bank account has a balance of $520,000. Account reconciliation is typically carried out at the end of an accounting period, such as monthly […]
