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It is imperative to define a loan in the first place. Critical to the definition are the following key elements;
- income;
- external sources/ borrower;
- borrowed from outside;
- not earned from normal business operations;
- has legal conotations;
- time bound;
- interest payable, unless if it is non-interest loan;
- liablity for future repayments;
- etc
From the above key concepts, in the main, the liability, you need to know that liabilities are not reported in the income statement, but shown in the Balance Sheet, which is simply Assets= Equity+Liabilities. You can only recognise a bank loan in your BS but you repay it in your IS. This reply is thought-provoking, you need to further consult the basics of accounting.
What else can I help you with?
How can one locate the EBIT (Earnings Before Interest and Taxes) on an income statement?
To locate the EBIT on an income statement, look for the line item that shows operating income or operating profit. EBIT is calculated by subtracting operating expenses from gross revenue.
What is BMACH?
If you're referring to an item on your bank statement I think it's a chain of cash machines. Got a couple of them on my statement from machines I've used. i havent used any cash machines but you have taken ove 400.00 out of my account
How does depreciation affect cashflow?
Indirectly. Technically it doesn't, depreciation is a non-cash expense. Depreciation expense does, however show up as a line item on the cash flows statement as an adjustment to operating income to derive net cash from operations... you add it back to income.
What is a UAF paid item penalty mean I bank with suntrust and i found this on my statement.?
I just found the same thing on my suntrust bank statement, but it's NSF paid items penalty $35 ??? l found a similar charge, stating NSF Paid ltems Penalty-$105. l found this was a charge for overdrawing. . . Very unnecessary charge, but still.
What does indication mean on a bank statement?
On a bank statement, "indication" typically refers to a note or mark that highlights a particular transaction or status related to an account. It may provide additional context or information about a specific item, such as whether a transaction is pending, cleared, or disputed. Essentially, it serves as a guide to help the account holder understand the nature of their transactions more clearly.
Does commission have a balance sheet or income statement account?
If commission is already received or paid then it is income statement item, but if it is still receivable or payable then it is balance sheet item, simple commission is a income statement item
What is the common denominator for each item on the income statement when preparing a common size income statement?
net income
Does account payables appear on the income statement?
NO, Account payable is a balance sheet item it does not appear in the income statement.
Is a earthquake an extraordinary item on an income statement?
No, of course.
Which item is the hardest to track on a personal cash flow statement?
income
Is director's remuneration an expenses in income statement?
Directors remuneration is part of income statement and also expense of business but required to be shown as separate item.
Is bank account a balance sheet item or income statement?
Bank account is actual bank account and it is asset of business and like all other assets which are shown in balance sheet bank account also shown under current asset portion of balance sheet.
What does horizontal and vertical analysis tell us about a company?
Vertical analysis, or common-sized statements , each amount on a financial statement as a percentage of another item. It can also to analysis income statement, balance sheet and cash flow statement.Eg. Income statement : turnover is expressed as 100% and every item in the income statement is expressed as a percentage of turnover (sales).
Is provision for income tax a profit and loss item?
Yes, provision for income tax is considered a profit and loss item. It represents the estimated tax expense that a company expects to incur based on its taxable income for the period. This provision is recorded on the income statement, reducing the net profit, as it reflects the cost of doing business and the obligation to pay taxes.
Describe the diffferences between financial statement income and taxable income?
There is some difference in financial statement income as well as taxable income as in financial statement income there are items which are not allowed by tax authorities and main item is depreciation. Other factors are that tax is deducted on income which is received while in financial statement income included revenue which is not received or accrual items that needs to be adjusted as well that's why financial statement income and taxable income is not same.
What item appears on both the retained earnings statement and the balance sheet?
Net income
Is discount received balance sheet item or not?
It's only treated in income statement, not balance sheet.
