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A company had a before tax profit if 2000000- what was their tax liability?
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Net profit is a liability?
It is not because what makes you think what you have earned is not belonging to the company? with no profit, company will gone bankrupt easily if net profit is liability. if it is liability, who is the company owing the money to?
Retained earnings a asset or liability?
Retained earnings are non distributed profit part and hence a liability of the company to payback to the owners of company on case of dissolution that's why retained earning is liability and not the asset.
Why net profit is disclosed on liabili ty side of balance sheet?
because profit is earned on the capital invested which is not the company's money. capital is also like a liability and the profit should actually be given to the owner and the money is still there with the company so it is again a liab. for the company to pay the profit which is a return on the capital invested by the owner.
Where does retained earnings go?
Retained earnings is that part of current year's profit which is not distributed to share holders of company, so as it is a part of profit , it is shown under capital portion of liability side of balance sheet.
Is general motors for-profit or not-for-profit?
General motors is for profit company.
Net profit is a liability?
It is not because what makes you think what you have earned is not belonging to the company? with no profit, company will gone bankrupt easily if net profit is liability. if it is liability, who is the company owing the money to?
How to calculate percent of 17203 profit on 2000000?
17203 profit / 2000000 times 100% is 0.86%.
Can a profit corporation also be a limited liability company?
Yes
Retained earnings a asset or liability?
Retained earnings are non distributed profit part and hence a liability of the company to payback to the owners of company on case of dissolution that's why retained earning is liability and not the asset.
Is an inevtory an asset or liability?
Inventory is a current assets of company because by selling the inventory company earns revenue and generate profit
Where can you find general liability insurance for a non-profit dance company in NYC?
Contact an agent in your area.
Is general reserve fund placed in asset side in a balance sheet?
General reserves are part of profit of the company for usable in future so it is the liability of company and shown in liability side of balance sheet.
What is the rate of gross profit on installment sales if a merchandise costing 1500000 on an installment basis is sold for 2000000?
2000000-1500000=500000 500000/20000000=25%
Why net profit is disclosed on liabili ty side of balance sheet?
because profit is earned on the capital invested which is not the company's money. capital is also like a liability and the profit should actually be given to the owner and the money is still there with the company so it is again a liab. for the company to pay the profit which is a return on the capital invested by the owner.
Four differences between limited liability company and partnership?
1.In a Limited Liability Company the liability of the Directors is limited to the extent of in the value of the shares held by them in the company. In a Partnership firm the liability of the partners is in proportion to their profit sharing ratio. 2.The directors in a Limited Liability Company may or may not be shareholders in the company.They could be executive directors on salary. The partners in a partnership firm are the co owners of the company in proportion of capital employed individually. 3.The directors in a Limited Liability company earns salary.They are not liable individually in case of losses in the company. In a Partnership Firm the Partners earns salary (remuneration), Interst on capital employed in the business and a share of profit. 4.The terms and conditions and the the nature of business to be done by a Limited liability company is covered in the Memorandum and Articles of association. The same is covered by a Partnership deed in a partnership firm. The Profit and loss sharing ratio,remuneration to be paid and interest to be paid to partners is mentioned explicitly in the deed.
Why is net profit treated as a liability?
Net profit for a business is liability because it must be paid to equity holder and creditors.
Are wages expenses an asset or liability?
Neither, it is an expense, a negative entry in the company´s Profit and Loss, thus decreasing its Equity position.
