The four basic financial statements that are prepared by for-profit companies are the balance sheet, the income statement, the statement of retained earnings, and the statement of cash flows. These are the financial statements that owners, investors, and auditors will look at primarily to see how the company is doing,...

Currency stability is an important factor in determining the profitability of a company in an economy. Fluctuating exchange rates are likely to affect a business in many ways since the costs of making purchases or sales across borders are severely affected. The exchange rates thus play a vital role to...

The stages of the budget cycle include the following: first, engaging in preparatory activities before preparing the budget. An example is where managers take full commitments in fulfilling their roles and responsibilities. Second, making budget calls. For example, managers contribute to making budget calls in understanding the problems and responsibilities...

People always tell you about the stock market as though it is the magic gateway to another world. That world is full of privilege, wealth, streets made of gold, and house parties that rival Gatsby’s. Images of men walking in tailor made suits, wielding the latest technology towards their ear,...

Certified Financial Planner Eleonore Szymanski states diversification concerns proper management of all investments one owns whether 401(k)s, IRAs, mutual funds, equities, or bonds. Szymanksi argues it is important to achieve the appropriate balance among different investment assets. She reminds the readers readjustments are required from time to time because different...