sas say on stock valuation that
Common stock is a liability account in nature and it is the amount which is payable by business back to it's owners that's why it is shown in balance sheet and not in income statement.
Searching for help to solve ur Business Accounting assignment? Haha...so do i.....
First Answer : Debit an account called investments and credit an account called Cash (or a payable) Second Answer : The first answer is referring to buying of Stocks (as in Shares like those listed on a Stock Exchange). If you are thinking of stock such as raw materials of a business or stock for resale (- e.g. an electrical appliance store purchases TVs for resale therefore the TV is their stock) than there is actually NO DOUBLE ENTRY because there is NO SUCH THING as a STOCK ACCOUNT. Stock is recorded using a physical record in and out. This gives rise to different stock valuation methods (FIFO, LIFO, AVERAGE). Why is there no STOCK ACCOUNT in double-entry? Because you buy something for say £10, you will want to sell it for a higher price, say £15 to make a profit. If you have a Stock Account, it will not balance. So how is "stock" recorded in your standard double-entry system? "Stock" is actually recorded using 4 accounts:- Increase in Stock Purchases A/C Return Inwards A/C Decrease in Stock Sales A/C Return Outwards A/C The balancing is done at the year end through your Profit and Loss A/C. The difference is your "Profit or Loss".
Closing Stock:-Last years Gross profit*Present year sales account+direct and indirect account+purchase account+opening stock-sales account
The constant growth valuation model assumes that a stock's dividend is going to grow at a constant rate. Stocks that can be used for this model are established companies that tend to model growth parallel to the economy.
they are twoo: FIFO and LIFO
Common stock is a liability account in nature and it is the amount which is payable by business back to it's owners that's why it is shown in balance sheet and not in income statement.
Searching for help to solve ur Business Accounting assignment? Haha...so do i.....
nice questi
A valuation stock option is an agreement made to offer the option to purchase the stock at a later date. The price of the option is based on the reference price and the value of the asset in which the stock is being purchased.
One way to open a stock trading account is to visit a bank branch in person. There are also many online services with which you can start a stock trading account. A minimum initial investment of $2000 is standard. It is necessary to provide your social security number and other contact information to create an account.
1. When you receive a dividend from the company or 2. When your trading account providing broker sends you a consolidated statement of all your stock holdings...
First Answer : Debit an account called investments and credit an account called Cash (or a payable) Second Answer : The first answer is referring to buying of Stocks (as in Shares like those listed on a Stock Exchange). If you are thinking of stock such as raw materials of a business or stock for resale (- e.g. an electrical appliance store purchases TVs for resale therefore the TV is their stock) than there is actually NO DOUBLE ENTRY because there is NO SUCH THING as a STOCK ACCOUNT. Stock is recorded using a physical record in and out. This gives rise to different stock valuation methods (FIFO, LIFO, AVERAGE). Why is there no STOCK ACCOUNT in double-entry? Because you buy something for say £10, you will want to sell it for a higher price, say £15 to make a profit. If you have a Stock Account, it will not balance. So how is "stock" recorded in your standard double-entry system? "Stock" is actually recorded using 4 accounts:- Increase in Stock Purchases A/C Return Inwards A/C Decrease in Stock Sales A/C Return Outwards A/C The balancing is done at the year end through your Profit and Loss A/C. The difference is your "Profit or Loss".
Standard costing is for improving cost /cost control, simplify stock valuation and improving costing and pricing of products. Can be applied to jobs, operations, processes and department and are used in manufacturing, engineering, processing and service industries.
First stock should consumed first and then other stock. Majority of the companies are following weighted average method to value inventories. In India, the Income Tax authorities only allow FIFO & Weighted Average Method.
No. The stock market is not falling down after Obama's statement.
The present stock value evaluation is one of the methods of share valuation which does not use CAPM.