0
What will be the impact on assets profit and liabilities of a firm on account of salary paid?
Wiki User
∙ 10y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
How does profit link with changes in assets and liabilities?
Profit is the difference between your assets and liabilities if you have $30,000.00 in assets and $20,000.00 in liabilities = you would have $10,000.00 in profit If you have 22,000.00 in Assets and $30,000.00= you would have $-8,000.00 in loss can be written as ($-8,000.00) usually in Red hope this helps
What is revaluation account?
revalutation account is opened to record the revaluation of assets and liabilities.the profit or loss arising because of revaluation is transfered to old partners capital account in their old profit sharing ratio. Companies from time to time check the values of assets and liabilities for there book values and if there is some changes in book values of assets and liabilities that revaluations are made through revaluation account which are later charge to profit and loss account or transferred to reserve account.
Are profit and loss account on an income statement or balance sheet?
Profit & Loss Account is the Statement showing indirect expenses and receivable of a Company where as Balance Sheet is the Statement highlighting Assets and Liabilities of the said Company.
What are general purpose financial statements?
A financial statement includes the following: Current Assets Non-Current Assets (add those together) Total Assets Current Liabilities Non-Current Liabilities (add those together) Total Liabilities (Total assets less total liabilities) Net Assets Equity is calculated below and the total of equity needs to balance with the net assets figure.
Is debit positive or negative?
In case of Assets debit is positive which means increase in assets as well as for liabilities debit means reduction in liabilities but for expenses it is negative as it increases the expenses and reduces the profit
What is the Difference between income statement and profit and loss account?
Both are sameIncome statement shows both operating and non-operating amounts. Revenue, Net profit/loss and profit per share. I think you are thinking of the Balance sheet that lists assets, liabilities and shareholders' equity.
How do you figure total equity if give assets debt sales and profit margin?
Answer:The accounting equation (or business equation) states that total assets equal total liabilities plus equity. To figure out equity, you need to know total assets as well as total liabilities. Assuming there are no liabilities other than debt, equity equals assets minus debt.
Under what heading would fixed assets show on a profit-loss account?
They do not reflect in the profit loss account at all.
Is owners equity a debit or credit?
the residentual interest in the assets of an entity after deducting all its liabilities exp capital profit
What is the object of preparing final accounts?
It tells us the Financial Statement of the business. We know by Final accounts that how much profit we have earned after deducting all sort of expenditures. It also gives us the idea about the Current Assets and the Fixed Assets of the Business which are balanced with the liabilities of the business. In other Words, It tells us that a business has the equal Assets (monetary value if you like to say) as compare to all its liabilities (Share Capital, Share premium, Debenture, Long term liabilities like mortgage or Bank Loan, Current liabilities like overdraft and account payable, and Dividend payable etc.)
What is the difference between a Profit and Loss Account and a Balance Sheet?
A profit and loss account reports the results of activity over a period of time, usually one year. A balance sheet reports the situation (assets, liabilities and equity) at a point in time. The Profit and Loss Statement reports (Revenue - Expenses) Net Income (Net Profit) and it accumulates throughout one fiscal (business) year and is restarted from zero at the end of the year. The Balance Sheet reports the value of the entity (person or business). Assets = Liabilities + Equity. Its accounts start from zero at the beginning and continue to accumulate until the business closes. For more information check the related link.
Balance sheet statement definition?
bal sheet is a statement which shows assets and liabilities of the co./firm or any organisation with profit or losses
