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Does commission have a balance sheet or income statement account?
If commission is already received or paid then it is income statement item, but if it is still receivable or payable then it is balance sheet item, simple commission is a income statement item
What is the common denominator for each item on the income statement when preparing a common size income statement?
net income
Does account payables appear on the income statement?
NO, Account payable is a balance sheet item it does not appear in the income statement.
When should a company disclose extraordinary items on their income statement?
If an item is unique and significant but it does not meet the criteria for being both "unusual and infrequent," the item must remain in the main section of the income statement; it can however be shown as a separate line item. For exampleof situations that do not qualify as extraordinary items loss from frost damage to a Florida citrus crop and (2) the write-down of inventory from cost to a lower amount. Apparently the frost in Florida is not unusual in nature and not infrequent. Similarly, it's not unusual for items in inventory to have a current value lower than its cost. Although these things maybe significant, unusual, and important, they do not belong in the section containing extraordinary items.mercedes trejos.
Which item is the hardest to track on a personal cash flow statement?
income
Is director's remuneration an expenses in income statement?
Directors remuneration is part of income statement and also expense of business but required to be shown as separate item.
What does horizontal and vertical analysis tell us about a company?
Vertical analysis, or common-sized statements , each amount on a financial statement as a percentage of another item. It can also to analysis income statement, balance sheet and cash flow statement.Eg. Income statement : turnover is expressed as 100% and every item in the income statement is expressed as a percentage of turnover (sales).
Describe the diffferences between financial statement income and taxable income?
There is some difference in financial statement income as well as taxable income as in financial statement income there are items which are not allowed by tax authorities and main item is depreciation. Other factors are that tax is deducted on income which is received while in financial statement income included revenue which is not received or accrual items that needs to be adjusted as well that's why financial statement income and taxable income is not same.
What item appears on both the retained earnings statement and the balance sheet?
Net income
Is discount received balance sheet item or not?
It's only treated in income statement, not balance sheet.
Do you pay federal taxes on accounts receivables?
Not until they become part of taxable income. A/R is a balance sheet item...not income statement.
Prepaid income balance sheet or income statement?
Prepaid Income is a balance sheet item. Income received in advance is treated as Liability of the firm. The same get transferred to Income Statement / Profit & Loss Account when income is earned. Followed by Accrual Accounting concept and Accounting Period Concept, such income received before they are actually earned are booked as a liability and get transferred to Income Statement as income upon actually earning them.
