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What is the concept of sustainable income Can you give an example of what this number may look like by using the income statement of a real-life company?
Wiki User
∙ 12y ago
Estimating Sustainable IncomeWhen evaluating a company, it generally makes sense to eliminate all irregular items inestimating future sustainable income.
To address this dilemma, many trustees and institutions are beginning to distribute what might be called "sustainable income" to the income beneficiary (or to the operating budget of an endowed institution, e.g.). The thinking seems to be that what a donor had in mind when he/she specified "income [or income only]…" is that the donor wanted the income beneficiary to enjoy a long-term, sustainable income stream (perhaps growing to keep up with inflation). A further presumption is that the donor further wanted the principal to be protected against loss (including loss due to inflation) for continual production of income or for eventual distribution/use by the institution.
Wiki User
∙ 12y ago
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Is the cost concept the basis for entering the exchange price into the accounting records?
That statement is true. The cost concept is the basis for entering the exchange price into the accounting records.
What is cost concept?
Cost concept means that the amount where any asset is bought is to be written in the financial statement. The marked price is not to be written here but exact the amount in which the asset is bought should be written.
Prepaid income balance sheet or income statement?
Prepaid Income is a balance sheet item. Income received in advance is treated as Liability of the firm. The same get transferred to Income Statement / Profit & Loss Account when income is earned. Followed by Accrual Accounting concept and Accounting Period Concept, such income received before they are actually earned are booked as a liability and get transferred to Income Statement as income upon actually earning them.
What does the concept of goodwill accounting involve?
The concept of goodwill accounting involves paying for an intangible service instead of tangible ones. An example of this is paying for a company's good reputation.
What is the accounting concept or principle applied when an allowance is provided for estimated uncollectible accounts receivable?
Setting up an allowance for uncollectible accounts is an application of the Principle of Conservatism. The idea is that when there are uncertain outcomes, you don't want to make the company look "too good," because that might mislead financial statement users.
What does the concept of SOX 404 mean?
The concept of SOX 404 is a statement that must be included in the company's annual report. It is an overview of the financial protocols within a company and the rules and regulations that are put in place to safeguard them.
What is environmental economics?
Define concept of Sustainable Development?
What is the examples of money measurement concept?
The business office, stocks, and company cars are examples of the Money Measure Concept. It is sometimes called Measurability Concept and means that only events and transactions that can be measured in monetary terms is recognized in the financial statement.
The concept of using natural resources at a rate that does not deplete them is called?
sustainable development
Hoe does the concept of consistency aid in the analysis of financial statement?
How does the concept of consistency aid in the analysis of financial statements? What type of accounting disclosure is required if this concept is not applied?
What is the concept of maximum sustainable yield?
its a catch should be done in a limit without harming the marine environment and in a sustainable way so that could be preserved for the future .
Full disclosure concept?
Full disclosure concept is a term used in reference to financial statements. It means that a financial statement should not be used as a means to conceal but as a way to convey so a person can get a correct picture of the position and financial performance of a company.
What is the concept that baitulmal use in their company?
What is the concept that baitulmal in islam
Bugatti venom concept who did it and who did it?
The concept was created by the Volkswagen Company. The concept may be produced in a few years.
Which statement accurately describes the concept of a social concept?
An agreement between people to follow laws and be governed by a leader or leaders
What are Tactical Agreement Operational Agreement?
Concept of Requirements/Statement of Requirements
What are tactical agreement operation agreement?
Concept of Requirements/Statement of Requirements
