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Does the statement of cash flows classifies cash receipts and payments into four categories?
i have four years of balance sheet and income statement and now want to prepare cash flow statement from assets
Is depreciation on balance sheet or income statement?
Depreciation on the income statement is the amount of depreciation expense that is appropriate for the period of time indicated in the heading of the income statement. The depreciation reported on the balance sheet is the accumulated or the cumulative total amount of depreciation that has been reported as expense on the income statement from the time the assets were acquired until the date of the balance sheet.Let’s illustrate the difference with an example. A company has only one depreciable asset that was acquired three years ago at a cost of $120,000. The asset is expected to have a useful life of 10 years and no salvage value. The company uses straight-line depreciation on its monthly financial statements. In the asset’s 36th month of service, the monthly income statement will report depreciation expense of $1,000. On the balance sheet dated as of the last day of the 36th month, accumulated depreciation will be reported as $36,000. In the 37th month, the income statement will report $1,000 of depreciation expense. At the end of the 37th month, the balance sheet will report accumulated depreciation of $37,000.
Documents that have to be retained for 6 years within accounts?
This question probably relates to income tax act 1961 India. Any authority on tax laws will be a competent person to answer this question.However, so far I know the documents of income and expenditures on the basis of which income tax returns filed every year by a person is to be retainedfor six years after the date of final assessment is made. But in some cases the income tax authorities do you believe the statement of accounts submitted by a person and put the case under scrutiny query and the period of premiums
What is net income tax liability?
what is net income tax liability? Adjusted net income is the excess of gross income for the tax year (including gross income from any unrelated trade or business) deter­mined with certain modifications over the total deductions (including deduc­tions directly connected with carrying on any unrelated trade or business) that would be al­lowed a taxable corporation determined with certain deduction modifications. Gross income does not include gifts, grants, or contributions received by the private operat­ing foundation but does include income from a functionally-related business. Gross income and the total deductions allowable from that income will be figured as they are normally figured for income tax purposes except as otherwise pro­vided. For figuring adjusted net income, there will be no exclusions, deductions, or credits un­less provided under Income modifications and Deduction modifications. Amounts received by the foundation in tax years beginning after 1969 representing repay­ment of principal on loans made in tax years before 1970 are not includible in gross income. However, payments of interest on those loans are includible in gross income.
Can you received 2 checks from the IRS for income tax?
No not in and for the same years income tax return.
Why the balance sheet is a more important statement than income statement?
The balance sheet is no more or no less important than the income statement. The balance sheet provides a snapshot of the business as it stands at a given point in time and the income statement shows how the business got there. Together with the statement of cash flow (which can be constructed using multiple years of income statements and balance sheets), these three financial documents help clearly define the financial health of the business.
Why Balance sheet is a more important statement than income statement?
The balance sheet is no more or no less important than the income statement. The balance sheet provides a snapshot of the business as it stands at a given point in time and the income statement shows how the business got there. Together with the statement of cash flow (which can be constructed using multiple years of income statements and balance sheets), these three financial documents help clearly define the financial health of the business.
Does the statement of cash flows classifies cash receipts and payments into four categories?
i have four years of balance sheet and income statement and now want to prepare cash flow statement from assets
How do you calculate net income from balance sheet?
You can't ! it's a function of the Profit and Loss Statement. Income from previous years will appear on the balance sheet...but Net Income is a P&L Function.
Why the balance sheet statement is more important than income sheet?
The balance sheet is no more or no less important than the income statement. The balance sheet provides a snapshot of the business as it stands at a given point in time and the income statement shows how the business got there. Together with the statement of cash flow (which can be constructed using multiple years of income statements and balance sheets), these three financial documents help clearly define the financial health of the business.
What is your conclusion in financial statement?
the financial statement helps one to know the difference between income or gains and expenses or losses in p and l A/C.and the balance sheet to compare with the last years profits.
Is depreciation on balance sheet or income statement?
Depreciation on the income statement is the amount of depreciation expense that is appropriate for the period of time indicated in the heading of the income statement. The depreciation reported on the balance sheet is the accumulated or the cumulative total amount of depreciation that has been reported as expense on the income statement from the time the assets were acquired until the date of the balance sheet.Let’s illustrate the difference with an example. A company has only one depreciable asset that was acquired three years ago at a cost of $120,000. The asset is expected to have a useful life of 10 years and no salvage value. The company uses straight-line depreciation on its monthly financial statements. In the asset’s 36th month of service, the monthly income statement will report depreciation expense of $1,000. On the balance sheet dated as of the last day of the 36th month, accumulated depreciation will be reported as $36,000. In the 37th month, the income statement will report $1,000 of depreciation expense. At the end of the 37th month, the balance sheet will report accumulated depreciation of $37,000.
Are dividends part of comprehensive income?
Dividends act as a debit to Retained Earnings. Net Income is closed out by Crediting a gain to Retained Earnings which is a permenant equity account. Therefore Dividends are not a reduction to Net Income but instead a reduction of Retained Earnings and further of Owners Equity. As you may note, this also means that since Dividends are not included in Net Income they are not Tax Deductable which for many years resulted in double taxation of dividend income. Once at the corporate level and again at the personal level. Ex: In the financial statements it is going to be looking like this: Income Statement: Revenue-Expenses=Net Income Statement of Retained Earnings: Begging Retained Earning+Net Income-Dividends= Ending Retained Earnings
Base Corporation Tax on Fiscal Year?
A small business owner can save on their annual corporation tax by calculating income based on a fiscal year rather than a calendar year. Using a fiscal year makes it possible to shift income between two calendar years. This does not eliminate the responsibility of a business owner to account for all income within a single calendar year. Still, dividing the total income of the business between two calendar years makes it easier to manage tax debt. A business owner can choose when to account for yearly income. Basing everything on a fiscal year can also keep their business in a more favorable tax bracket.
Why do you think the SEC requires that balance sheets provide two years of comparative financial information and income statements provide three years of comparative financial information?
Income statements contain more data that can be extrapolate and inferred from by investors than the balance sheet does. For more accurate extrapolations, the SEC requires 1 more year of information for the income statement.
What are two basic financial statements.Explain their importance to the various uses?
The two basic financial statements are the Income Statement or Profit & Loss Statement and the Balance Sheet. The Income Statement reflects the revenues and expenses for a period in time such as January 1, 20xx through the date you are working on say August 31, 20xx. These revenues and expenses give you the net income or (loss) for that particular period. The Balance Sheet is a report of the business for a point in time, August 31, 20xx. The assets and liabilities of the business as well as the owners equity in the business make up the Balance Sheet. Assets - Liabilities = Owners Equity. The net income or (loss) from the Income Statement flows over to the Balance Sheet under the Equity section. Business use these reports to understand the financial position of their business ans where to make changes for future years. Investors use these reports to make decisions on whether they want to invest or provide loans to the business. Accountants use these reports to prepare tax returns for both individuals and businesses depending on the type of entity the are...corporation, partnership, sole proprietorship.
How old is the Nerf Corporation?
About 41 years
