Blog entries about iClass - a Learning Management System
This past 5-6 months in the MBA class, my life has changed:
- I have gone through so many emotions: laughed, cried, been happy, been angry, been sad, outraged, indifferent sometimes.
- My room is a mess.
- My relationships have suffered.
- Social life has plummeted to a zero level.
Although it seems my life is in disarray, i have acquired 10 years worth of knowledge in 5 months. My life needed to turn upside down to be built up again.
I sm extremely grateful for this opportunity i have been given by God, and hope and pray i make good use of it. I hope i am really able to internalize all these learnings in my everyday life..
In other news, exams start tomorrow. Please pray for me. I remain your humble expert, no semi expert.. ❤❤️❤️
Asset Accounts are accounts where the Assets of the company are recorded.
Assets are resources under the control of a business that have monetary value.
These Assets include buildings, machinery, raw materials, cash, and other resources a company needs in their operations and to make investments.
The Assets which the company can convert into cash within one year are called Short Term Assets, while the Assets that cannot be recovered within one year are called long term assets.
Assets are financed by the shareholders equity and banks and creditors: Assets = Owners Equity + Liabilities
Generally, the more Assets a company has, the more investments it can make and the more its ability to create positive net cash flows.
Liability Accounts are the accounts that records how much a company owes to banks and other creditors who are financing the part of its asset not covered by the shareholders' equity.
Like Assets, there are short term Liabilities and long term liabilities.
Depending on the industry, a high liability figure might be regarded as positive or negative.
Revenue Accounts are those accounts where the income of a company are recorded.
A company produces goods and services and sells them to customers, and the proceeds from these operations are revenue. This revenue is called operating revenue because it comes from the main activities of the company.
However, when the company makes income from an activity not considered to be the company’s main activity, that revenue is called nonoperating revenue.
It is important that a company keeps his revenue high, because high revenues are impacted positively on profits.
Expense Accounts are those accounts the expenses of a company are recorded
Just as in Revenue, the Expenses that relates directly to the main activity of the company are operating expenses, while those not related directly are called non-operating expenses.
Every company will work towards keeping its expenses low so that it can maximize profit and reduce cash outflows.
Equity account records the value of a company that belongs to its Shareholders.
Equity represents what the shareholders will have remaining if they sold all the assets of a company and paid all its liabilities It is made up of the money invested by shareholders plus all the profits and losses that the company has earned or lost on behalf of its owners or shareholders.
"You will never know how strong you are until being strong is the only choice you have," said Bob Marley. Today, I will be strong as though that is the only thing I have to do; because truly, that is all I truly have to do. Anything I do without my best effort, is yet to to be done well. On being my best, there are no alternatives, not one. My schedule today is 'best'.
Some things are always shouting whenever I see a financial statement, and in my mind, I am like witness- Your LBS Money is working.
Daily I understand why many of these courses are valueable.Exam is coming and I dont think I am studying this for any exam.
Those moments, when it seems there’s so much flurry of activities that the head seems to spin. Again, those moments, when supposed efforts don’t seem to yield the desired results. Yet again, those moments when the law of diminishing returns seems to be playing games with us…
In those moments, I think we need some time off to just breathe, reflect and revamp our strength…
Because without fail, those who take time to wait eventually mount up with wings as eagles, soaring and running without fainting.
Cheers to MMBA2 first exam baptism...
The statement of cash flows reports the inflows and outflows of cash, and the change in a company’s cash balance during an accounting period.
When a company has more cash inflows than outflow their cash balance increases (and vice versa).
The Statement of Cash Flow impacts the Asset side of the Statement of Financial Position. An increase in cash balance will increase the company’s Assets (and vice versa). The Statement of Cash Flow is also linked to the Statement of Proft or Loss because a Proft or a Loss situation affects cash flow.
A company’s net cash flow is not equal with its income because the Statement of Profit or Loss is prepared using the accrual accounting basis.
A net positive cash flow is important for a company because it enables it to meet its liabilities and pay dividends to its owners. A positive cash flow enables creditors to assess a company favourably for loans, and also increase the valuation of its shares in the market.
ASSETS = LIABILITIES + EQUITY
The above, is a financial accounting equation. This is also called the dual aspect concept. It is made up of an organization's asset (left hand side), which has current and future worth to the organization and can be measured. The (Right hand side) consists of liabilities which the organization owes and equity, which are values that would be repaid to the company's shareholders.
The above equation is a form of account, and the left and right sides must always be equal at all times.
Thank you for your time