If a payment hasn’t come in or gone out yet, it won’t show up on the cash flow statement. The P&L statement clearly sets out your company’s earnings versus its losses. It essentially gives an account of the bank balance at the end of a given period, once customers have paid you and you’ve paid suppliers. Any business that wants to survive has to have a plan for accounting. That probably means hiring a professional, but founders also need to know the basics. Even if you haven’t got a clue where to start, you’ll need to...

A TEV, i.e., Techno-Economic Viability, can also be undertaken to get an opinion from the aviation industry experts about the plan’s viability. Risk CategoryRisks are categorized as per the business activities of the organization. They provide a structured overview of the underlying and potential risks faced by them. The most commonly used risk classifications include strategic, financial, operational,...

Those costs include direct costs, variable overhead costs, and fixed overhead costs. Under absorption costing, all manufacturing costs, both direct and indirect, are included in the cost of a product. Absorption costing is typically used for external reporting purposes, such as calculating the cost of goods sold for financial statements. Under variable costing, companies charge off, orexpense, all the fixed manufacturing costs during the period ratherthan deferring their expense and carrying them forward to the nextperiod as part of inventory cost. Consequently, income before income taxes under variablecosting is $600 less than under absorption costing because morecosts...