Easily Replace Cross to the Financial Statement (Personal)

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How to Replace Cross to the Financial Statement (Personal)

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Hi mark Kohler here, lets talk about building a personal financial statement now This is a really important procedure tool Its gonna help you in a lot of different ways and Im not talking about a business Financial statement with a profit and loss and balance sheet and all that thats it another video for another day Bringing in QuickBooks into the mix and all the bookkeeping that comes with that But theres gonna be a lot of times where you need to build a personal financial statement Maybe for a bank loan your kids are applying for FAFSA Youre going into a new business venture a bank is asking one for Credit line who knows but having a good financial statement at your fingertips can help you succeed in business And its going to help you look a lot more professional So lets dive into it Now a good place to start is what a typical financial statement looks like then we can put it in perspective so if you have a business youre gonna have whats called a profit and loss and youre

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Why did FASB replace APB?

The AICPA disbanded the APB in the hope that the smaller and fully independent FASB could more effectively create accounting standards. The APB and the related Securities and Exchange Commission (SEC) were unable to operate entirely independently of the U.S. government.

How do you cross reference financial statements?

Cross-referencing is one such technique and is appropriate when two balance sheet accounts are directly related to each other and that connection needs to be plain to the reader. The two accounts are cross-referenced by placing appropriate language describing their relationship right on the balance sheet.

What is the difference between FASB and APB?

What Is the Accounting Principles Board? The Accounting Principles Board (APB) was the authoritative body of the American Institute of Certified Public Accountants (AICPA) from 1959 until 1973. It was replaced in 1973 by the Financial Accounting Standards Board (FASB).

Why did the FASB move from financial accounting statements to codification?

The primary purpose of the Codification was to mitigate the difficulty of locating, understanding and applying the various levels of hierarchy of GAAP that were issued by numerous standard setting bodies over the years. The FASB believes these difficulties may have resulted in the incorrect application of GAAP.

What are the three personal financial statements?

The three main types of financial statements are the balance sheet, the income statement, and the cash flow statement.

What do you put on a personal financial statement?

A personal financial statement is a snapshot of your personal financial position at a specific point in time. It lists your assets (what you own), your liabilities (what you owe), and your net worth. To get your net worth, subtract liabilities from assets.

Why was the APB replaced by the FASB?

The APB was replaced in 1973 by the Financial Accounting Standards Board (FASB). The main reasons for the replacement were: The need for an independent organization was considered necessary, since there was a potential for the APB to be influenced by its parent organization.

Why did FASB change revenue recognition?

The objective of the new guidance is to establish principles to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue from contracts with customers. The new guidance: Removes inconsistencies and weaknesses in existing revenue requirements.

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