Financial Statements

for profit.........

Yes retained earnings that are restricted for building expansion are placed on the classified balance sheet. Retained earnings are not considered assets.

This is usually taken as a good sign (positive) of the financial health of the company, put simply it means the company assets exceed liabilities.

Treasury Stock is the stock that the corporation has sold and then reacquired. Treasury Stock is a Contraequity account that increases when debited and decreases when credited. Does this answer your question.

Maintaining up to date accounting records helps improve inventory management. Also, it's a good idea to at least do a annual physical count to ensure inventory accuracy.

Loss is shown under asset side of business as it has debit balance and reverse of profit which is shown under owner equity section.

assets received fro selling products or services

Replacement of fixed assets means to sale out the old assets and acquire a new one or replace old piece of asset with new one in exchange with same vendor.

EBIT is not show in balance sheet rather Earning after tax is shown in balance sheet.

Retained earning does not go anywhere. It is a part of capital equity which shown in equity section of balance sheet.

To explaining the report of quantity schedule what amount of unit entered in department and that what cost had it also this report shows the per unit cost of production,total cost placed in production and the cost of goods completed or transfer to next department.

Net profit before interest and tax amount is selected for cash flow from operating activities and after that interest and tax is deducted while net profit before tax means net profit is adjusted for interest already while net profit before interest and tax means net profit is not adjusted for interest as well as for tax.

Accruals are accounts on a balance sheet that represent liabilities and non-cash-based assets. These accounts include Accounts Payable, accounts receivable, goodwill and future tax liability.

Budget for cash planning and control that presents expected cash inflow and outflow for a designated time period

To increase your sales you need to know that 73% of people buy from products and services from someone they know and like. That's right! 73%. Whereas 27% of people will only buy on price. 27% of people shop on price alone. So do yourself, your company and your business a big favour. Concentrate on building relationships with clients and customers. Get to know and like them. They will start to know and like you and buy more products and services and buy them more often. There is a great site called www.bulletproofbusiness.com.au which has plenty of helpful tips in their news and tips section. You can get some more great info on this interesting subject at

No, that is explained on the Statement of Changes in Owner's Equity. However, you do need to prepare a Statement of Comprehensive Income first in order to prepare the Statement of Changes.

Yes, sales discount is the reduction in value of sales that's why shows as deductions from sales revenue.

External Auditor has the role to materially evaluate the financial statements and provide his opinion that 'Does financial statements reflects true and fair activities of business' or not.

No, they aren't considered a part of the sale

The original cost of the item less accumulated depreciation for the item.

And

The gross book value is the original/historical price paid for an asset, without a depreciation deduction.

An accountant is a finance professional who can work for a company or can set up an individual practice to provide accounting services. An accounts officer is a person who is in charge of accounts of a particular company.

No a Profit & Loss statement will tell you net imcone, which is not the same as cash flow. Cash Flow is the result of a sources and uses of funds statement which is often a better indication of how a buisness is performning that the P&L.

Trade Discount are considered cost of sales/reduction in sales dependant upon who the customer is. Cash Discount is always considered Increasing Interest Expense/Reduction of Interest Expense, dependant upon who the recipient is.

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Bismillah..

So lets assume that a product was sold for $300 with discount condition (2/10, n/30).

FOr Seller Journal Entry would be:

Dr A/R 350

Cr Sales 350

If the payment is made in time (within 10 days) then for seller the journal entry is as follow:

Dr Cash 344

Dr Sales Discount 6

Cr A/R 350