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Under stock and debtors system branch profit is ascertained by opening account?
Instead of opening of one branch a/c separate accounts are opened for various transactions at branch.
How do debtors affect the income statement?
iincreases the net profit
How you can know about a corporation type?
Whether it is a profit or non-profit corporation can be ascertained from the company prospectus, its nature of activities,future plannings etc.
Which are the most important accounting ratios and indicators?
Gross Profit Margin:(Gross Profit / Sales) x 100 = ______%Net Profit Margin:(Net Profit / Sales) x 100 = _____%Stock Turnover RatioCost of Goods Sold / Average Stock = ______ timesCost of Goods Sold = Sales - Gross ProfitAverage Stock = Opening Stock + Closing Stock / 2If opening stock is not given treat closing stock as opening stockDebtor Collection Period(Debtors / Sales) x 365 = ______ daysCreditor Payment Period(Creditors / Purchases) x 365 = _________daysReturn on Capital Employed(Net Profit / Capital) x 100 = _________%Current RatioCurrent Assets / Current Liabilities = ____:____Quick Ratio/Acid Test RatioCurrent Assets - Stock / Current LiabilitiesCurrent Assets = Cash/Bank + Debtors + PrepaymentsCurrent Liabilities = Creditors + Overdrafts Accruals
What means sundry debtors regarding to profit and loss account?
Sundry debtors refer to various customers or entities that owe money to a business for goods or services provided on credit. In the context of a profit and loss account, sundry debtors are not directly reflected as expenses or revenues but can impact cash flow and overall financial health. An increase in sundry debtors may indicate higher sales on credit, while a significant amount of unpaid debts could suggest potential financial risks. Proper management of sundry debtors is crucial for maintaining liquidity and profitability.
How does opening and closing stock affect gross profit?
Opening and closing stock directly impact gross profit by influencing the cost of goods sold (COGS). The formula for COGS is: Opening Stock + Purchases - Closing Stock. If opening stock is high or closing stock is low, COGS increases, reducing gross profit. Conversely, low opening stock or high closing stock decreases COGS, thereby increasing gross profit.
How does a non-profit add an additional service location?
By opening it.
Opening stock minus closing stock?
profit or loss
What is the effect on net profit if opening stock is overvalued?
If the opening stock is overvalued, it leads to an inflated cost of goods sold (COGS) when calculating net profit. This is because the higher opening stock increases the total inventory costs, thus reducing the gross profit. Consequently, the overall net profit will be lower than it should be, potentially misleading stakeholders about the company's financial health.
What is debtor turnover?
The money which a company has taken from some one( a bank or by people). The profit taken on this amount is calle debtors turn over.
What is the fourmula of pnl?
Profit and Loss formulas. Profit and loss is the branch of basic mathematics which deals with the study of profit and loss made in a business transaction.
What is business opporunity?
A business opportunity is a niche (or opening) in the market that can be exploited for profit.
