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The convention of conservatism takes into account all prospective profits but leaves all prospective losses?
Wiki User
∙ 12y ago
According to this concept "expected losses are losses but expected gains are not gains". On the basis of this concept closing stock is valued at cost price or market price, whichever is lower. Provision for bad and doubtful debts are maintained.
Wiki User
∙ 12y ago
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What is a sales account?
A sales account is the account that actually records a company's profits. The account is normally taken after all employees are paid and all company expenses are doled out.
Can capital redemption reserve account be created out of securities premium account?
No. CRR should be created out of divisible profits only
What accounts increase the capital account?
Capital account increases when capital is introduced, shares are issued, increase in retained profits, etc.
What is the difference between drawing account and expense account?
A Drawing account is used for withdrawals by owners of the entity. This is commonly used in sole proprietoships and partnerships. The withdrawals are the distribution of the profits to the owners. In corporations dividends declared reduce retained earnings in a similar manner because dividends are distributions of profits to the stockholders. An expense account is used for costs incurred by the entity such as salaries, depreciation, rent, interest, insurance, advertising, and taxes.
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 do you mean by surplus account?
A surplus account is the accumulation of undivided profits.
Happy meals account for what percentage of McDonald's profits?
40%
What is bank customers share of the profits made on loans?
Savings account interest is the bank customer's share of the profits made on loans.
Why do you prepare a profit and loss appropriation account?
profit & loss appropriation accounts are prepared after profits. Basic purpose is to show how the profits are distributed.NOT only profits but also concerned losses.
What is a sales account?
A sales account is the account that actually records a company's profits. The account is normally taken after all employees are paid and all company expenses are doled out.
Profit and loss appropriation account uses meaning?
details of profit and loss appropriation account Profit and loss appropriation account is prepared after profit and loss account..It s a account where the profits earned by the company is brought in from profit and loss accont and it s distributed to various accounts like interim divident account, provision for taxiation account, general reserve account etc.....it s a account which shows how the profits are distributed in an organisation.....
Can capital redemption reserve account be created out of securities premium account?
No. CRR should be created out of divisible profits only
Are forex signals useful in making profits?
Forex signals can be useful not only in making profits, but also in learning how to make profits consistently. Signal providers you shoul dask for their live myfxbook account. This shows how well they trade, percent of wins/losses, live money, growth of account, etc.
What accounts increase the capital account?
Capital account increases when capital is introduced, shares are issued, increase in retained profits, etc.
What are the rules for distribution of profits and losses?
according to the sharing ratio's of partners, we can distribute profit and loss account.
What is the difference between drawing account and expense account?
A Drawing account is used for withdrawals by owners of the entity. This is commonly used in sole proprietoships and partnerships. The withdrawals are the distribution of the profits to the owners. In corporations dividends declared reduce retained earnings in a similar manner because dividends are distributions of profits to the stockholders. An expense account is used for costs incurred by the entity such as salaries, depreciation, rent, interest, insurance, advertising, and taxes.
How banks get their profits?
Banks get their profits from the below actions:By charging customers for the services offered to them - Ex: Charges for fund transfers, Charges for account maintenance & opening etcBy getting interest from customers to whom loans are provided.
