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So, if you need to beef up your inventory for a seasonal sales increase, such as Christmas, using a credit line is perfectly acceptable.
When someone, whether a creditor or investor, asks you how your company is doing, you'll want to have the answer ready and documented.
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The Approved Budget serves as the benchmark by which the Society's financial performance is implemented and monitored.Liabilities and net worth are composed of creditors and investors who have provided cash or its equivalent to the company in the past.As a source of funds, they enable the company to continue in business or expand operations.It is a cumulative record that reflects the result of all recorded accounting transactions since your enterprise was formed.
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You need a balance sheet to specifically know what your company's net worth is on any given date.Analyzing how the balance sheet changes over time will reveal important information about the company's business trends.
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