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What is the interest due on a note payable in one fiscal period but not paid until the next fiscal period called?
The interest due on a note payable in one fiscal period but not paid until the next fiscal period is called "accrued interest." This interest is recognized as a liability on the balance sheet at the end of the fiscal period in which it is incurred, even though the payment occurs later. It reflects the obligation to pay interest that has accumulated but remains unpaid.
Why does a business need to be consistent in the fiscal period it uses for its financial reports?
A business needs to be consistent in the fiscal period it uses for financial reports for purposes of comparison and accuracy. If the fiscal period changes, then it is difficult to compare the business's performance across different periods.
What period of time is the income statement?
Income statement can be made for any period of time but normally it is one fiscal year and all expenses and incomes related to that fiscal period is shown.
What is a fiscal period?
A year of business. July to July.
What does fiscal year mean?
Fiscal years means the minimum accounting period for which books of accounts are maintained and business activity is performed.
Unexpired insurance at the end of the fiscal period represents is it an accured asset liability expense or deferred expense?
deferred nexpense
How to calculate expired and unexpired prepaid insurance at the end of a year?
In case of some expense u might have seen advance payment is done. So as to comply with the terms of agreement or it can befor any other reason too.And this advance is shown in the asset side of balance sheet.Now,in case of insurance the same thing is happening.For example:- a ltd. F.y begins from 1-4-10 to 31-3-11. A ltd. Purchases a fixed asset on 1-2-11. Now a ltd. Wants to get this fixed asset insured and minimum insurance period as per the insurance policy is 1 year. So here the insurance period willbegin from 1-2-11 to 28-2-12.As per accrual basis of accounting expenses which pretain to a particular year are are to be shown in the p/l of that year. And rest are shown as prepaid expense (in case of insurance termed as , unexpired insurance)now coming back to a ltd. Let us suppose that payment made is = rs. 12000.Calculation of expired and unexpired expense.Total insurance expense paid = 12000insurance expense of single = 12000/12monthexpired insurance = 1000*2 (for the month of feb and march 2011)and rest of the amount is unexpired insurance because the period to which it pertains is of next f.y. Hence in the b/s of 10-11 insurance amount of rs 10000 will be shown as unexpired insurance.And yes one thing more. There is no such term as unexpired prepaid insurance. Either u call it prepaid insurance or unexpired insurance.Hope i solved ur query.
What is a financial period?
Fiscal year
What is financial period?
Fiscal year
What is the interest due on a note payable in one fiscal period but not paid until the next fiscal period called?
The interest due on a note payable in one fiscal period but not paid until the next fiscal period is called "accrued interest." This interest is recognized as a liability on the balance sheet at the end of the fiscal period in which it is incurred, even though the payment occurs later. It reflects the obligation to pay interest that has accumulated but remains unpaid.
Distinguish between outstanding expenses and unexpired expenses?
Those expenses which have been paid in advance and whose benefit will be available in future are called unexpired or prepaid expenses. e.g. insurance premium The expenses remaining unpaid at the end of the accounting period are called outstanding expenses.Certainly expenses like salaries,rent etc. of the every month will be paid in the next months. By ADITYA (UPES)
What is the purpose of the adjustments column in the worksheet?
The purpose of the adjustments column in the worksheet is for the necessary adjustments for supplies and pre-paid insurance. It is also used the adjustment of merchandise inventory accounts to begin a new fiscal year.
Why does a business need to be consistent in the fiscal period it uses for its financial reports?
A business needs to be consistent in the fiscal period it uses for financial reports for purposes of comparison and accuracy. If the fiscal period changes, then it is difficult to compare the business's performance across different periods.
What period of time is the income statement?
Income statement can be made for any period of time but normally it is one fiscal year and all expenses and incomes related to that fiscal period is shown.
What is a fiscal period?
A year of business. July to July.
The ending account balance of permanent accounts for one fiscal period are the beginning account balances for the next fiscal period?
th ending account balances of permanent accounts for one fisical period?
Define Prepaid revenue?
Prepaid revenues are defined as revenue that have been received in the current fiscal period but that will not be added to revenues until a subsequent fiscal period when the benefits are given.
