When getting all of the necessary materials together to prepare or reconstruct a record to come up with a dollar amount, it is imperative the right amount go to the correct statement.

The cash report, the Profit and Loss statement, and the balance sheet are regarded as 'position statements'.

Reports must be prepered in such a way that the right amounts are recorded in the right position statements

been proper inform about your account

Accounting -> Preparation of reports Preparation of reports The cash report, the Profit and Loss statement, and the balance sheet are regarded as 'position statements'. Position statements reflect: CASH PROFIT WEALTH For example, statements of receipts and payments Profit and Loss Balance Sheet Cash budget Application Prepaid rent 31 May Bank 6 000 31 May Rent expense 4 000 Balance 2 000 6 000 6 000 When preparing or reconstructing a record to determine dollar amounts it is important that the relevant amount go to the correct position statement. In the example above: $6000 = cash position. It is the amount paid $4000 = profit position. It is the amount incurred $2000 = wealth position. It represents a future benefit

Statement of position can reflect mainly about cash inflow and outflow, profit and condition of wealth. Information is fruitful.

point taken

What is a good preparation of reports?

clear

Reports must be prepered in such a way that the right amounts are recorded in the right position statements.