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What is the difference between profit making accounting and not for profit making accounting?
The difference between profit making accounting and not for profit making accounting is, that question should answer itself! 8^0
Is economic profit always less than accounting profit?
No economic profit is not always less than accounting profit; However, if accounting profit is less than economic profit the business would exit the industry.
What is the the meaning of unrealised loss or unrealised profit in accounting terms?
UNREALIZED INCOME (paper profit) is profit which has been made but not yet realized or collected through a transaction, such as a stock which has risen in value but is still being held. also called unrealized gain or unrealized profit or paper gain or book profit. UNREALIZED LOSS is a term that commonly refers to the write-down of an investment portfolio resulting from applying the lower of cost or market value on an aggregate basis. On a short-term portfolio, the unrealized loss is shown on the income statement. On a long-term portfolio, the unrealized loss is presented as a separate item in the stockholder's equity section of the balance sheet. Capzper
Is economic profit equal to accounting profit?
no
Are there circumstances in which income is recognized even when a cash basis taxpayer does not receive cash?
Yes, it may arise on unrealised profit on unsold stocks, profit element of upward review of assets.
What are some ways in which accounting for health care organizations especially not-for-profit ones tends to differ from accounting in other industries?
accounting for healthcare organizations in not-for-profit ,tend to differ from accounting in other industries.
What is the advantage of accounting profit?
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Is tax is added in accounting profit or not?
1. Tax is a deductable item from accounting profit as tax is calculated on profit before tax amount to reach at profit after tax account which is also the net profit available for distribution to share holders of company.
What is the difference between cash accounting profit and loss and accrual accounting profit and loss?
Cash accounting and accrual accounting are two methods of accounting in cash accounting system all expenses and revenues are recorded when actual cash is paid or received while in accrual profit and loss statement, revenues and expenses are recorded when they are actually occurred and timing of receipt and payment of cash is not important.
In consolidation why are some inter-company profit deemed to be unrealized for one accounting period and realized in a subsequent accounting period?
I think that this may be answered as follows. Company A makes widgets; it sells some on the open market for a profit and sells some to another company (B) in the group for a (smaller) profit. Let us say that at the end of the financial year open market sales had a profit of £100 and profits on sales to company B were £250. However company B had only sold half of the widgets bought from Company A. In the consolidated accounts of the group company A2Z the profit on the sales from Co A to Co B had not been fully realised because Co B still had half the widgets on the shelf but the open market sales profit of £100 i fully realised. Taking the picture from a group point of view whole half the profits in Co A on the sales to Co B had not been earned by the group because not all the widgets had been sold by Co B; this profit £125 (half of £250) is unrealised. The next year, when Company B sells the widgets to third parties, the unrealised interco profit will be released
What is meant by the phrase 'accounting profit'?
Profit that is made by superb accounting. By using the accounting trade, money is saved that would have been lost without it. However I am supposed to reach 150 characters.
Why you prepare profit and loss account?
as simple as that to know the net profit or loss from business in an accounting period. for more about financial accounting visit indianaccounting.blogspot.com
