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How is profit determined under the cash basis of accounting and the accrual basis of account?
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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.
What is the difference between profit and loss account and cash flow statement?
Cashflow : Only the actual cash spent / received will be entered. Credit will not be entered. Profit & loss : It is more of accrual basis, all transactions that are happening in that accounting period will be entered. Cashflow : Only the actual cash spent / received will be entered. Credit will not be entered. Profit & loss : It is more of accrual basis, all transactions that are happening in that accounting period will be entered.
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
What is the method for accounting of non-profit organizations?
Complicated question: REAL simple answer, which way oversimplifies it... SHOULD BE accrual, but that is not always possible depending on staff ability and resources. Well, really it depends on the type of non-profit but it's been my experience that both methods are used, the cash method for most receivables aka "donations" and when purchases are made. We deduct the purchase when the bill is received. The accrual method is used when accounting for the grants that are awarded but not yet received. Hope that explains it a little better. :)
What is the Difference between government accounting and financial accounting?
The biggest difference is that government account is non-profit and based on funds....also called fund accounting. They do not have profits. Financial accounting tracks income and have or hope to have a profits.
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.
What is the difference between profit and loss account and cash flow statement?
Cashflow : Only the actual cash spent / received will be entered. Credit will not be entered. Profit & loss : It is more of accrual basis, all transactions that are happening in that accounting period will be entered. Cashflow : Only the actual cash spent / received will be entered. Credit will not be entered. Profit & loss : It is more of accrual basis, all transactions that are happening in that accounting period will be entered.
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
Are the proceeds from the sale of a building included in net income?
No proceeds from sale of building is part of cash flow statement while profit or loss on sales of building is part of net income in accrual base accounting while cash base accounting it is part of net income or loss.
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.
Advantages and disadvantages of trading profit and loss account?
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
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
What financial statement is prepared first in accounting?
for a manufacturing concern it will be a manufacturing account and for a non manufacturing concern it will be a trading account or a profit and loss account or income and expenditure account.
What is the method for accounting of non profit organizations?
Complicated question: REAL simple answer, which way oversimplifies it... SHOULD BE accrual, but that is not always possible depending on staff ability and resources. Well, really it depends on the type of non-profit but it's been my experience that both methods are used, the cash method for most receivables aka "donations" and when purchases are made. We deduct the purchase when the bill is received. The accrual method is used when accounting for the grants that are awarded but not yet received. Hope that explains it a little better. :)
What is the method for accounting of non-profit organizations?
Complicated question: REAL simple answer, which way oversimplifies it... SHOULD BE accrual, but that is not always possible depending on staff ability and resources. Well, really it depends on the type of non-profit but it's been my experience that both methods are used, the cash method for most receivables aka "donations" and when purchases are made. We deduct the purchase when the bill is received. The accrual method is used when accounting for the grants that are awarded but not yet received. Hope that explains it a little better. :)
What is the Difference between government accounting and financial accounting?
The biggest difference is that government account is non-profit and based on funds....also called fund accounting. They do not have profits. Financial accounting tracks income and have or hope to have a profits.
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.
