Financial Statements

A financial statement is a record of the financial activities of a person or business entity where all related financial information are presented in an orderly manner and can be easily understood.
Agourmet burger is more than a typical patty topped with lettuce,tomato, and ketchup. Gourmet burgers go out the way to add toppingsthat are exotic and unique to provide a different flavor twist. Agourmet burger is not available at most restaurants. They can alsobe a tad bit expensive, but most...
In most cases what makes a company increase it's profits is a good marketing plan to boost sales and business.
Gross income usually is the money someone or something has earnedbefore any deductions such as taxes, expenses, or promotion hasbeen deducted. If you are receiving money after such expenses havebeen deducted, you are receiving money based on NET income.
Look i'm an expert at buying clothes and being at the store but ihate boring stuff like this
Categorize all assets by type (cash, receivables, equipment).Categorize all liabities by type (accruals, accounts payable, loanspayable). Determine initial investment in business. Difference is "retainedearnings", which is cumulative profit from the start of thebusiness. The above assumes proper...
Donation A/c Dr. To Cash/Bank A/c Cr.
A common size balance sheet represents financial statements in a vertical ratio comparison form. Meaning, all financial statements can be compared easier and will compare different firms with different levels of income and different levels of assets. The common size BS is in the form of...
Any negative cash balance represents float. It could represent the total amount of checks outstanding, checks generated and not mailed, or an unreconciled line of credit. Basically, negative cash should be booked as additional accounts payable or an increase in the outstanding borrowing on the line...
Big Winery owns several large oak barrels which it uses to make wine. Which of the following should big use to allocate the cost of the oak barrels when determining the taxes payable for the company?
A company has a total assets of 10250 dollars and its owner equityis 5000 dollars how much are the liabilities of the company? assets = liabilities + equity $10,250 = liabilities + $5,000 --> liabilities = $10,250 -$5,000 = $5,250 . In Personal Finance
The Income Approachis one of three major groups of methodologies, called valuationapproaches, used by appraisers. It is particularly common incommercial real estate appraisal and in business appraisal. Thefundamental math is similar to the methods used for financialvaluation, securities analysis, or...
Centralized function is very important for any org. Which is decentralized in physically but not in practically means one unit in several parts
Not necessarily. Book value is the basis of the item lessaccumulated depreciation. Book value is rarely the actual cashvalue of an item, any item. Book value has to do with accountingand taxes, not sales price or actual cash value.
The contribution margin ratio increases when?
It will increase the profit with 45000 whileincrease in cash of 65000 while reduce in land of 20000.
Since the notes to the financial statements form part of the financial statements and are a component of financial statements, certain disclosures found in the notes may not be found in the balance sheet, income statement, statement of retained earnings or statement of cash flows.
There are 3 factors that combine to define capitalization. Thefirst is the total amount of a corporation's stock, the second isthe company's long-term debt, and the third is the company'sretained earnings.
Samsung introduced "environmental accounting," which managescost-related environment activity.
$15,100 . 25,000 - 1,900 = 23,100 [total depreciation after 7 years] . 23,100 / 7 years = 3,300 per year [amount of depreciation each year] . 3,300 per year * 3 years = 9,900 [amount of depreciation after three years] . 25,000 - 9,900 = 15,100 [value after three years of depreciation]
If you are looking for a college level book to follow: Crash Coursein Accounting and Financial Statement Analysis, 2nd Edition Matan Feldman Arkady Libman ISBN: 978-0-470-04701-9 Accounting Principles, 7th Edition, with PepsiCo Annual Report Jerry J. Weygandt, Univ. of Wisconsin, Madison Donald E....
It depends on whether the client owes you money and what basis of accounting you use. If the client owes you money and you use the accrual basis then it posts as an increase (debit) to Cash and a decrease (credit) to accounts receivable. If they are paying in advance for future work then it's an...
Retained earning does not go anywhere. It is a part of capitalequity which shown in equity section of balance sheet.
Overhaul expense on a second hand machinery is a capital expense, and should be added to the original cast of the asset.
They are the same; in the financial year we earned income.
EBIT is not show in balance sheet rather Earning after tax is shown in balance sheet.
It has reverse effect on that and it will decrease your cash flow.
The conceptual framework considers asset valuation accounts to be part of the related asset account. They are not considered to be assets or liabilities in their own right.
Depreciation is not a cause of reduction of cash from business, so in indirect method depreciation is added back to net income to arrive at actual cash flow from net income and non cash items are either added or deducted for this purpose.
Bi-Weekly = every 2 weeks - Every payroll period will cover 2 weeks. Bi-Monthly = 2x per month - Every calendar quarter will have one payroll period that has 3 weeks in it.
Operating cash flows shows the overall cash inflows and outflows which initiate completely due to operating activities of business like receipts from debtors or payment to creditors etc.
when net income is zero
Debiting the Projects expenses once they are approved and before they are paid or accrued violates all Accounting standards and distorts Financial reporting .The NFP Organization may keep track of projects Payments through budgeted Accounts in its Accounting System.
in accounting all facts are not recorded only those facts or transactions are recorded which can be represented in terms of money and which can not be recorded fall beyond the scope of accounting thus in accounting the recorded facts are those which can be presented in monetary terms.
[Debit] Donated Car [Credit] Owner equity or retained earnings
Not really... Gross profit = Net sales - Cost of goods sold The profit on an item is not dependent upon all of your operating expenses. You would include operating expenses to determine net income for the business, but not to calculate gross profit for the sale of inventory.
By withdrawing from business we can reduceequity account or debit balance reduce the equity account.
The Income statement summaries the revenues and expenses of a company for a period of time. Typically you will find Revenues and Expenses on the income statement. The expenses include the costs that are incurred to operate your business. Common stock will be found on a Statement of Cash Flows,...
No. Depreciation is the process of allocating to expense the cost of a plant asset.
Higher. It's your TR minus your Variable Costs over sales. So if you have a higher revenues coupled with low costs, you will have a higher contribution margin and more profitable.
Notes payable is same like accounts payable aliability of business and it is shown under current liabilitysection of balance sheet.
If the company's gross income does not increase, but you add employees, then the next reporting period most likely will show a loss of net income. However, if adding employees causes a company to increase revenues, financial reports might show an increase in net income. This question needs more...
To show the financial condition of an organization.
If insurance paid in advance then it is assetbut if insurance benefit taken and payment not made then it isliability.
Loan is a liability for business as companyhas to return back the loan from bank or third party.
Answer . The statement of profit and loss follows a general format that begins with an entry for revenue and subtracts from revenue the costs of running the business, including cost of goods sold, operating expenses, tax expense and interest expense. The bottom line (literally and figuratively) is...
Requires that accounting standards be followed for all items of significant size
No difference. It is just a matter of symantics (different ways to say the same thing).
You would post the surplus credit into the 'Unassigned credit' entry.
Registrar of companies
\n \n\n \n\n \n\n. \n. No, i was looking for the answer not to provide other people with an answer i am not yet aware of...
Contribution margin ratio determines the percentage of variable cost in over all sales while contribution margin per unit tells the variable cost portion in per unit total cost or sales price.
A significant part of the equation to evaluate risk of long-term debt is the reliability of the organization issuing that debt and the likelihood of paying back that debt. In most cases, investing in the US Government is a lower risk than investing in a corporation.
A cash-trap business is one where all or most available cash is reinvested directly in the business, leaving little net value for investors. The business may look good, because it appears to have a high net worth, but has little chance of being able to liquidate the business. An example of a cash...
"A" company owns 60% of the outstanding voting stock of "v" corporation, what method should "A" Company use to account for the investment?
Debit. For online help in the basics of bookkeeping, and for information about recording business transactions, see the Related Link.
A company changes accounting principle.
interest is shown in cash flow from operating activities as cash outflow if interest is paid.
If you receive a dividend from your investment, it is an asset. If you pay a dividend to those who invested with you, it is a liability.
Cash is a tangible asset. Unlike something without tangible substance such as goodwill, cash is a hard or a tangible asset.
Break even sales = fixed cost + desired profit / contributionmargin ratio . Fixed cost = breakeven point sales * contribution margin . Fixed cost = 352000 * 0.35 = 123200 . Breakeven point = (123200 + 104300 ) / 0.35 . Breakeven point = 332857
when working capital decreases it should be written under the head SOURCES OF FUNDS in fund flow statement. and when W/C increases it should be written under APPLICATION OF FUNDS.
If your double-entry records are correct, a balance sheet will always balance (by definition). ASSETS = LIABILITIES + EQUITY If it does not balance, check all your entries, since the last balance sheet that did balance. You will find one or more errors to correct. Find and correct all of the...
The percentage of change in long-term liabilities between two balance sheet dates is an example of
If you dont' eliminate intercompany transactions it "grosses up" the income statement. So if you sold inventory in an intercomany transaction and then sold it to a third party you would count (most) of the sales revenue twice and (most) fo the COGS twice. By eliminating the transactions only the...
What is the Administrative Audit Is the process of checking analytical regulator continuously aspects of financial and administrative activities, and evaluation of goals and plans, policies and procedures, organizational structure and methods of measurement and evaluation of performance and methods...
Journal for transfer of donation amount unspent to corefund for project Expenses DR To bank CR To cash CR ( Budget amount spent ) For core fund Bank Cash Advance To Transfer of balance of project To TDS transfer to HO
We should calculate the profit on sales
assets, liabilities, stockholders' equity, revenues, expense
Net Profit Before Tax(N.P.B.T.) = Total sales - Total Expenses.
It depend on many factors like company policy or market situationor how much investment opportunity available to company. Companycan retain full net profit or it can distribute full amount of netincome to shareholders.
Opening cash balance is obtaining by looking at the last closing balance. In businesses this is usually done on the first day of the month. So the opening cash balance on the first day of the month will be the same is the closing cash balance of the month before.
Accounts receivable is any amount of money owed by a customer to abusiness. The cycle of accounts receivable includes services beingrendered, a customer being billed, and the business being paid.