Pills of finance and accounting: budgeting, pricing, and financial planning

What does the cash flow statement primarily show?

The profitability of the company over a fiscal year

The total debts and obligations of the company

How changes in the balance sheet and income statement affect cash

Which accounting method is suitable for solo entrepreneurs with minimal transactions?

Single-entry bookkeeping

Double-entry bookkeeping

Cost accounting

What does the pricing framework determine?

Specific product prices

Customer value

Business model

Why is cash flow critical?

Ensures bills can be paid

Increases profit margins

Reduces taxes

In general, how much income should be set aside for taxes?

10–15%

20–30%

40–50%