This essay focuses on beginning balance and ending balance of cash.as a “snapshot” or financial picture of the company at a specified point in time

beginning balance and ending balance of cash.

Current Ratio
The current ratio, one of the most widely used financial statement ratios, is as follows:
Acid-Test Ratio.

The cash flow statement then takes net income and adjusts it for any non-cash expenses. Then, using changes in the balance sheet, usage and receipt of cash is found. The cash flow statement displays the change in cash per period, as well as the beginning balance and ending balance of cash.

Key features:

• Shows the increases and decreases in cash
• Expressed over a period of time, an accounting period (i.e., 1 year, 1 quarter, Year-to-Date, etc.)
• Undoes all accounting principles to show pure cash movements
• Has three sections: cash from operations, cash used in investing, and cash from financing
• Shows the net change in the cash balance from start to end of the period

• Shows the financial position of a business
• Expressed as a “snapshot” or financial picture of the company at a specified point in time (i.e., as of December 31, 2017)
• Has three sections: assets, liabilities, and shareholders equity
• Assets = Liabilities + Shareholders Equity