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Sales discount is shown under income statement as a deduction from sales because it reduces the actual sales figure.
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What is a Stable Dollar Concept?
Historical costs are not adjusted in the basic financial statements to reflect changes in the unit of measure, the dollar. Supplemental financial statements are permitted to show adjustments for inflation
The basic objective of financial accounting is?
The basic objective of financial accounting is the formulation of financial statements including the balance sheet, income statement and cash flow statement. Income statements show the company's operating performance quarterly or annually.
Why companies consolidate their subsidiaries for financial reporting purposes?
Subsidiary companies are also part of group of companies so parent company is required to show the financial statements of group as a whole so that's why consolidated financial statements are prepared
What do auditors do?
An auditor specialises in examining and verifying a set of financial statements by reference to evidence (physical, oral, documentary, etc). When he/she are satisfied that the financial statements are true and fair, the auditor will issue a clean auditors' report; on the other hand, if the financial statements or the company are detected to show problems (e.g. show signs of fraudulent activity), the auditor's report will also make this clear.
Do financial statements show the market value of an asset?
In general, financial statements show the book value of an asset, not the market value. The few instances where the financial statements will show market valuations are as follows: * When derivatives are carried for hedge purposes, they are periodically marked-to-market * When an investment appears to materially have lost value (when comparing to similar instruments in the market or, for illiquid markets, when operating cash flows from an investment go down markedly), conservatism requires the asset value to be moved to the "market" or lower price
What is a Stable Dollar Concept?
Historical costs are not adjusted in the basic financial statements to reflect changes in the unit of measure, the dollar. Supplemental financial statements are permitted to show adjustments for inflation
The basic objective of financial accounting is?
The basic objective of financial accounting is the formulation of financial statements including the balance sheet, income statement and cash flow statement. Income statements show the company's operating performance quarterly or annually.
Why companies consolidate their subsidiaries for financial reporting purposes?
Subsidiary companies are also part of group of companies so parent company is required to show the financial statements of group as a whole so that's why consolidated financial statements are prepared
What is the difference between consolidated and parent company statements?
Comparative financial statements compares one set of financial statement with another set of financial statements while consolidated financial statement is prepared where in company there is parent and child company relationship exists to join the financial statements of parent and child company as a single financial statements.
What do auditors do?
An auditor specialises in examining and verifying a set of financial statements by reference to evidence (physical, oral, documentary, etc). When he/she are satisfied that the financial statements are true and fair, the auditor will issue a clean auditors' report; on the other hand, if the financial statements or the company are detected to show problems (e.g. show signs of fraudulent activity), the auditor's report will also make this clear.
What is auditer report?
An audit report is an opinion that is written by an auditor to show if the financial statements are correct. The auditor will indicate if they state the true financial position of the company.
What is articulation and how financial statement articulate?
Articulation refers to the ability of financial statements to connect and flow together seamlessly. In the context of financial statements, articulation means that the information presented in each statement is consistent with and supported by the information in the other financial statements. For example, the net income figure in the income statement should be carried over to the retained earnings section of the balance sheet, ensuring that the financial statements are coherent and accurate.
Do financial statements show the market value of an asset?
In general, financial statements show the book value of an asset, not the market value. The few instances where the financial statements will show market valuations are as follows: * When derivatives are carried for hedge purposes, they are periodically marked-to-market * When an investment appears to materially have lost value (when comparing to similar instruments in the market or, for illiquid markets, when operating cash flows from an investment go down markedly), conservatism requires the asset value to be moved to the "market" or lower price
What is a unconsolidated balance sheet?
When there is parent subsidiary relationship exists and in that case if separate financial statements are prepared by both parent and subsidiary company those statements are called unconsolidated statements.
Difference between sales discount and sales allowance?
Sales Discount is given if the customer/client pays within a specified time. Example: if you pay your bill in the first 15 days you will receive a 1% discount, the full amount must be paid within 30 days. Terms: 1/15 n/30 Sales Allowanceis given if there is something wrong with the merchandise, or to show customer that you value their business. They both effect the net sales. Sales Discount is a contra Revenue account Subtracted from Sales Returns /Allowance to arrive at Net Sales. for more info feel free to contact me: Marcia Reidaxumaccounting@rogers.com 416-904-1714
Are the sales decreasing in Renault?
"Renault's financial results for the first half of 2011 indicates that their sales are up by 1.9%. In the past, there has been a decrease; however, the current statistics show an increase in sales."
What kind of financial statements are required for a credit card application?
They need proof of income, employment and bank statements this is to show that you will have enough money to pay back the credit you have borrowed from the credit card company.
