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Usefulness of balance sheet and profit and loss for accounting information users?
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What relationship is there between the accounting equation and the balance sheet?
The relationship between the accounting equation and the balance sheet is the NET PROFIT. ( I THINK :/ )
What is the inventory system in accounting?
Inventory system is more likely recorded in the Balance Sheet section in accounting. It will not be at the Profit and Loss section.
What is relationship between tally and accounting?
Accounting is making a statement of company's profit and loss,and tally is making a perfect balance between assets and liability
What is an accounting cycle and how does it help in the accounting process?
ACCOUNTING CYCLE : An accounting cycle is a complete sequence beginning with the recording of the transactions and ending with the preparation of the final accounts.The sequential steps involved in an accounting cycle are as follows : 1.jounalizing,2.posting,3.balancing.4.trail balance,5.income statement(trading & profit & loss account to ascertain the profit or loss for the accounting period),6.position statement(balance sheet) ACCOUNTING PROCESS IS ALSO CALLED ACCOUNTING CYCLE. ACCOUNTING PROCESS : It consists of the following stages/helps : 1.recording of entries for all business transactions in journal. 2.posting of entries into ledger. 3.balancing of accounts. 4.preparing of trail balance with the help of different accounts to know the arithmetical accuracy. 5.preparing final accounts with the the help of trial balance.----trading & profit and loss account to know the profit or loss.-----balance sheet to know the financial position (of a company for year end or a period)
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
Why do employees need accounting information?
employees need accounting information to analyze the profit so as to determine their part of bonus and further identify the health of the corporation where they work.
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.
What is the relationship between cost accounting and managerial accounting?
Financial accounting relates to the information presented based on past events and records. Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends. e.g. projected cashflows, profit & loss, balance sheet... Financial accounting relates to the information presented based on past events and records. Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends. e.g. projected cashflows, profit & loss, balance sheet... Financial accounting reports are in standard formats which are worldwide accepted , where as Cost accounting reports are in the format as required by the management
Is economic profit equal to accounting profit?
no
What is Summarizing of accounting?
summarising involves presenting the already classified data in summarised form.this involve the preparation of balance sheet.
What are some ways in which accounting for health care organizations especially not-for-profit ones tends to differ from accounting in other industries?
accounting for healthcare organizations in not-for-profit ,tend to differ from accounting in other industries.
What is the Importance of accounting informationfor a business entity?
accounting information allows a business entity to be able to ascertain its total income and its total expenditure and to be able to know if it is making a profit or loss as the prior motive of any organization or business entity is to maximize profit
