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What else can I help you with?
Do you have to use the same depreciation for accounting and tax?
Tax department has developed theire own depreciation schedules for different assets class and use their own depreciations rather than using accounting depreciation and due to this accounting depreciation difference there is also difference in tax we pay and tax we calculate and called "Deffered Taxation"
Why the assets and laibilities sides of balance sheet is equal?
Accounting is based on the formula of Assets = Liabilities + Owner's Equity. the DR side of a balance sheet are the Assets while the CR side records Liabilities & Owner's Equity. Hence for the formula to be effective, both side of the balance sheet must be equal (balance). PS: It's not the asset and liabilities side but rather the Debit and Credit side.
Why is accounting described as a service activity?
Accounting services is mostly provided by certified accountants. Many organizations stay busy in generation profits and have no time to concentrate on their company's finances. For such situation, accounting companies in Dubai such as Flyingcolourtax come forward to give a helping hand by offering outsourced accounting services in Dubai. If you're looking for any kind of expert accounting services then contact Flyingcolourtax by visiting the link mentioned below: " www . flyingcolourtax . com "
Does depreciation increase total assets?
No, depreciation does not increase total assets; rather, it reduces the book value of tangible assets on the balance sheet over time. As an asset depreciates, its value is systematically expensed, which reflects the wear and tear or obsolescence of the asset. This reduction in asset value is matched by an increase in accumulated depreciation, but it does not affect the total assets figure. Overall, depreciation is an accounting method that allocates the cost of an asset over its useful life, leading to a decrease in the asset's net value.
Are deferred taxes included in cash flow calculations?
Deferred taxes are not typically included in cash flow calculations because they represent timing differences between accounting income and taxable income, rather than actual cash movements. Cash flow calculations focus on the cash generated or used during a specific period, while deferred taxes are more about future tax liabilities or assets. However, adjustments may be made to reconcile net income to cash flow from operations by accounting for changes in deferred tax assets and liabilities.
Cash flows more important than profits?
1. Why are we interested in cash flows rather than accounting profits in determining the value of an asset?
Why are you interested in cash flows rather than accounting profits in determining the value of an asset?
because that is what is being used
Do you have to use the same depreciation for accounting and tax?
Tax department has developed theire own depreciation schedules for different assets class and use their own depreciations rather than using accounting depreciation and due to this accounting depreciation difference there is also difference in tax we pay and tax we calculate and called "Deffered Taxation"
What fund accounting?
Fund accounting is the accounting system emphasizing on accountability rather than profitability
What is the meaning of 'historical cost accounting'?
Historical cost accounting is an accounting concept that states that all assets in the financial statement should be reported based on their original cost . Example : James buys a building for $2,000,000 ten years ago, the value of the building now is $3,000,000 but in James's accounting records, the building is still recorded as $2,000,000 (less depreciation). No account is taken of the increase in value.
What is the cost principle?
The cost principle is an accounting guideline that states that assets should be recorded based on the actual amount paid for them, rather than their market value or potential future value. This principle helps ensure that financial statements are reliable and reflects the actual cost incurred by a company to acquire its assets.
Why the assets and laibilities sides of balance sheet is equal?
Accounting is based on the formula of Assets = Liabilities + Owner's Equity. the DR side of a balance sheet are the Assets while the CR side records Liabilities & Owner's Equity. Hence for the formula to be effective, both side of the balance sheet must be equal (balance). PS: It's not the asset and liabilities side but rather the Debit and Credit side.
Why is accounting described as a service activity?
Accounting services is mostly provided by certified accountants. Many organizations stay busy in generation profits and have no time to concentrate on their company's finances. For such situation, accounting companies in Dubai such as Flyingcolourtax come forward to give a helping hand by offering outsourced accounting services in Dubai. If you're looking for any kind of expert accounting services then contact Flyingcolourtax by visiting the link mentioned below: " www . flyingcolourtax . com "
Why are there no capital assets in governmental type funds?
There are no capital assets in governmental-type funds because those funds account only for inflows and outflows of financial resources. Governmental-type funds can be used and indeed are used to acquire capital assets. When that happens, however, the accounting within the funds is such that there is an expenditure of financial resources, rather than an exchange of a financial resource for a capital asset. Capital assets are reported in government-wide financial statements, but not in fund financial statements.
Why are there no capital assets in government type funds?
There are no capital assets in governmental-type funds because those funds account only for inflows and outflows of financial resources. Governmental-type funds can be used and indeed are used to acquire capital assets. When that happens, however, the accounting within the funds is such that there is an expenditure of financial resources, rather than an exchange of a financial resource for a capital asset. Capital assets are reported in government-wide financial statements, but not in fund financial statements.
What is the definition of manual accounting?
manual accounting means making records of transactions in record books rather than computers.
Is NGO can make profits?
Non-governmental organizations (NGOs) can generate income through various means, such as grants, donations, and fundraising activities. While their primary goal is to serve a social purpose rather than to make profits, they can engage in revenue-generating activities that align with their mission. However, any surplus income is typically reinvested into the organization's programs and services rather than distributed to shareholders. Thus, while NGOs can "make profits," these are not profits in the traditional business sense but rather funds used to further their objectives.
