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When is the working capital adjustment used while calculating profit fee?
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Difference between equity capital and preferrence capital?
Preference share capital is that type of capital which receives the fixed percentage of profit no matter if company earns profit or loss and it has preference over all other kind of share capital. EQUITY CAPITAL is that capital which have right to profit after all other kind of liabilities payment and only receives profit if company earns profit.
Does profit add to capital?
Profit is earned by the business in fiscal year and it is part of capital of the owner that's why it increases the capital of business because owners invest money to earn profit so it is shown in capital portion of balance sheet as an addition to capital.
Formula for calculating net profit?
Sales Less: Cost of sales Gross Profit Less: Admin Expenses Selling Expenses Other Expenses Net Profit
Why is net profit added back in capital on the liability side?
Because net profit is the increase in capital for the period of time, and must be added to capital to reflect its true value.
What are the difference between equity share capital and preference shares capital and examples?
Preference share capital is type of capital which has preference on other type of share capital as preference share capital may have more profit ratio than other and it is paid first from profit of company and preference share holders get there share even if company has earn no profit. Equity share capital is share capital on which share holders get share from profit in the last after paying every other obligation on company. Detail answer available in related link.
What is pre opening and working capital?
Pre-opening capital is money needed to start a business. Working capital is the money needed to keep a business running. Working capital, hopefully, is gained through the operation of the business as profit.
What is pre-opening and working capital?
Pre-opening capital is money needed to start a business. Working capital is the money needed to keep a business running. Working capital, hopefully, is gained through the operation of the business as profit.
When calculating gross profit is the debit side a profit or loss?
profit
What is the formula for calculating profit per cent?
It is 100*profit/costs.
What is the responsibility of Financial accountants?
To calculate the net profit/losses and other accounts (Return On Capital Employed, Capital Employed, Working Capital, etc) of a particular business.
Please Explain what is the shape of profit for example if a company has made a profit of 1000 usd then where is this 1000 usd in balance sheet.is it true that net working capital is financed by profi?
the answer is partially correct. retained earinngs does finance net working captial. working capital is financed by both sources first with internal sources such as retained earning and with long term external sources such as equity, debt or bank borrowing Profit can be in a variety of places on the balance sheet. It may go into retained earnings on the Stockholder's equity side, it might be paid out in dividends, or go right into cash and accounts receivable on the asset side. A better way to find out the profit of a company is to take a look at their Profit-and-Loss statement (also called an income statement). Here you will find a very detailed picture of how a company generated revenue, spent revenue, and the end picture (profit or loss). Working capital as very little to do with profit. Working capital is current assets minus current liabilities. It is a measure of the liquidity of a business. It would be more correct to say that working capital is funded by revenue, although a business simply doing business contributes to working capital.
What is the percentage share of a capital partner and working partner. capital partner only invest in the form of goods not money working partner does all the work. company is on the name of Wpartner?
the capital partner is investing goods which is also a value based product. working partner do all the work should be paid a valuable salary based on his talent and 1/3 share from profit and the capital partner 2/3 profit only.
Is operating expense on Profit and Loss?
Operating expense is a loss, but is used in calculating overall profit.
Why net profit added in capital?
Net profit of current fiscal year added in capital because it is part of owners capital because owners have invested capital to earn profit.
Difference between equity capital and preferrence capital?
Preference share capital is that type of capital which receives the fixed percentage of profit no matter if company earns profit or loss and it has preference over all other kind of share capital. EQUITY CAPITAL is that capital which have right to profit after all other kind of liabilities payment and only receives profit if company earns profit.
How reserves are part of capital?
Reserves are maintained from profit of current year business and profit is part of capital that's why reserves are also part of capital as if it is not maintained separately it will be included in profit or capital.
What is the formula for calculation a bonus based on profit while deduction the bonus your calculating from the profit figure?
hey here comes the answer of calculating bonus=overtime hours multiplied by rate per hour ..........thanks
