ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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begin searching for a better-paying job.
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create a balance sheet and cash flow statement.
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develop financial goals.
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purchase life insurance.
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Detailed explanation-1: -Financial statements are compiled in a specific order because information from one statement carries over to the next statement. The trial balance is the first step in the process, followed by the adjusted trial balance, the income statement, the balance sheet and the statement of owner’s equity.
Detailed explanation-2: -1. Determine the Starting Balance. The first step in preparing a cash flow statement is determining the starting balance of cash and cash equivalents at the beginning of the reporting period. This value can be found on the income statement of the same accounting period.
Detailed explanation-3: -The Statement of Cash Flows Stating your net income for the period. Accounting for your non-cash expenses. Making appropriate adjustments for gains (or losses) on sales of assets. Noting changes in all current assets (that is, the difference between the earlier and later balance sheet entries)
Detailed explanation-4: -The balance sheet shows a snapshot of the assets and liabilities for the period, but it does not show the company’s activity during the period, such as revenue, expenses, nor the amount of cash spent. The cash activities are instead, recorded on the cash flow statement.