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If insurance paid in advance then it is asset but if insurance benefit taken and payment not made then it is liability.
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How assets write-down effect earning per share?
Assets = Liabilities + equities therefore equities = Assets - liabilities If Assets go down Equities reduce in value Earnings = Equities / Total No. of shares therefore earnings go down
What is the reason of why assets must equal to liabilities and capital?
in case things go belly up you need to have a means of paying off the liabilities
Where does prepaid insurance go on the multiple-step income statement?
A prepaid expense such as insurance is an operating cost and thus would be recorded under operating expenses
Show by example how to prepare a cash flow statement using a balance sheet?
This is pretty tough to do without actually having Excel or images of the balance sheet. The simplest starting point though is to start with net income and then take the difference between the assets and liabilities on the balance sheet. As assets go up, it means you didn't collect the cash or you paid cash to acquire the assets thus cash goes down. Conversely, if liabilities go up it means you didn't pay them so cash goes up. Then vice versa if assets or liabilities go down.
Where does a secured bank overdraft go on a balance sheet?
The bank over draft appears in borrowings under liabilities heading
What goes on income statement and what goes on balance sheet?
expenditures and revenue go to income statement while assets, liabilities and capital go to the balance sheet.
Does prepaid insurance go on income statement?
Prepaid insurance go to balance sheet as it is paid in advance and current assets of business.
What assets are on the balance sheet?
A company balance sheet has three parts: assets, liabilities and ownership equity. The main categories of assets are usually listed first, and typically in order of liquidity. Assets are followed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assets or the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities. Another way to look at the same equation is that assets equals liabilities plus owner's equity. Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner's money (owner's equity). Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections "balancing." Because of the asset and liabilities are presented in the company balance sheet, it can help the manager to make decision whether the company should make further investment or not. As we know, this financial statement details your assets, liabilities and equity, as of a particular date. Although a balance sheet can coincide with any date, it is usually prepared at the end of a reporting period, such as a month, quarter, or year. So, by having a good management of balance sheet, can easy to make the decision whether they should to invest more for the company by looking on the previous investment made by the company.
Can you Bankrupt a court order?
Generally not. And you do not BK a specific thing..you go BK...all of your assets and all of your liabilities are included. You do not pick and chose.
Why is limited liability a major advantage of a corporation?
This means in case of liquidation or bankruptcy their liabilities are only limited to the assets of the corporation and thus does not go into the coffer of the government
Do accounts payable go on an income statement?
No they belong under the liabilities section on a Balance Sheet
Where does wages due go in a balance sheet in business studies?
Wages due (also known as "Creditors for Wages"), is listed in the Balance Sheet under "Trade and other payables" which falls under Current Liabilities. Current Liabilities again is a sub section of the Liabilities section of the Balance Sheet.
