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What are the methods of calculating profits on incomplete contract?
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Why is spreadsheets a good way of recording and calculating profits?
Spreadsheets are for manipulating numbers. So anything to do with calculations can be done with a spreadsheet. So dealing with recording and calculating profits is ideal for a spreadsheet.
What items are used in calculating the GNP?
A+: Wages, rents, interest, profits.
Which item are used in calculating the gnp?
wages,rents,interest,profits
Are depreciation charges implicit cost?
yes, depreciation is an implicit cost. but this implicit cost is added to total costs in calculating accounting profits.
Division of profit and losses in partnership?
Profits and losses are shared evenly Except otherwise stated in the contract.
What two proposed methods of returning profits from commercial fisheries to the public are?
Cost-recovery and Rent extraction
When a firm utilizing FIFO inventory accounting what would the calculating gross profits assume that?
sales were from beginning inventory until it was depleted, and then use sales from current production
How do you calculate the share value of a company?
How to calculate the value of a share of a company which is not quoted in the market. Whether the profits transferred to reserved are to be added to the subscribed amount while calculating the value of the share.
What can you tell me about unjust enrichment?
Unjust enrichment is when a party wrongfully profits from a breach in contract. The contractual remedy is restitution during which the innocent party will receive the damages of the contract along with the unjust enrichments of the breaching party.
What did Bud propose to Tom?
Bud propose to Tom "If you sign the contract, I will give Nick thirty percent of whatever profits I might make."
How businessman use math?
A businessman uses maths in so many different ways. This is used in calculating profits, recording business transactions, counting days and so many other things.
What portion of profit on uncompleted contracts is transferred to the profit and loss account?
Profit and Loss Accounts are necessary accounting tools for any business, small or large. They are used to account for all financial gains and losses over a specific fiscal year. When a contract's provisions do not coincide with your business' fiscal year, you must decide how to account for contract profits. The most convenient solution is to simply calculate the profit during the fiscal year for which you are drawing up the Profit and Loss Account.Profit and loss accounts· Businesses use profit and loss accounts to track revenues, gains, expenses and losses during a specific fiscal year. In short, the statement helps a company's officers know whether they were profitable or not for the prior fiscal year. Because the statement is broken down into categories, officers can identify areas of needed improvement. Profit and Loss Categories· The statements are generally have two distinct categories: "Revenues and Gains" and "Expenses and Losses." The "Revenues and Gains" category includes revenues from "primary activities," revenue/income from "secondary activities," and gains (for example, on the sale of assets or gains from lawsuits). The "Expenses and Losses" category includes expenses from primary and secondary activities and all losses (on the sale of assets and lawsuits). An example of a "primary" activity is the buying and selling of merchandise, while a "secondary" activity is the rent from unused space Uncompleted Contracts· Whether you are engaged in a primary or secondary activity, your company likely signs contracts for the services of a third party, or otherwise to legally bind the party to engage in some action. For example, you may contract with vendors to have them sell your products on your behalf. Because the fiscal year may end before the term of a contract does, you may have profits on that contract that you want to account for in your Profit and Loss Statement. Accounting for Uncompleted Contract ProfitThe day that a fiscal year ends a new one begins. The terms of a contract may or may not coincide. Therefore, to account for profits in a given fiscal year, you merely need to add up all of the profit earned on a contract from the start of the current fiscal year to the last day in the current fiscal year. Because it is a profit, it will fall under the broad category of "Revenues and Gains." However, you must decide whether the profit on the contract is from your businesses "primary," or "secondary" activities, or whether it is a gain from the sale of long-term assets or a lawsuit. This tells you where to account for the profit in the overall Profit and Loss statement Profit on incomplete contracts: At the end of an accounting period it may be found that certain contract have been completed while others are still in process and will be completed in the coming years. The total profits made on completed contract say be safely taken to the credit of the profit and loss account. But the same cannot be done in case of incomplete contracts. These contracts are still in process, and there are possibilities of profits being turned into to losses on account of heavy rise in prices of materials and labor and losses on account of other unforeseen contingencies. At the same time it does not also seem desire able to consider the profits only on completed contracts and ignore completely incomplete ones because this may result in heavy fluctuations in the figure of profit from year to year. A year in which a large number of contracts have been completed will show an abnormal high figure for profit while reserve may be the case in the year in which a large number of contracts remain incomplete. Therefore, profits on incomplete contracts should be considered, of course, after providing adequate sums for meeting unknown contingencies
