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Financial Statements
A financial statement is a record of the financial activities of a person or business entity where all related financial information are presented in an orderly manner and can be easily understood.
5,583 Questions
If stock dividend is received then it will be shown under cash flows from investing activities while if stock dividend is paid then it is shown under cash flow from financing activities.
Define contingent liabilities?
types of liabilities also used in accounting matter in business level accounting. when use this liabilities at money goes outside also get some types of loss but not actual loss of the company's accounting departmental also.
Journal entry to record an accrued vacation expense?
Though I have never heard the term "accrued vacation expense" nor have I ever heard of a "vacation" being a business expense, however, the journal entry would be handled like most "payables". So if your company uses the account of Accrued Vacation Expense, the journal entry should be something like....
Vacation Expense (debit) $XXX
Accrued Vacation Expense (credit) $XXX
Once the amount is paid, a debit would be recorded in the Accrued Vacation Expense account and a credit to Cash, to remove it from the books and note that the debt (or expense) has been met.
How do you record a journal entry for a completed service that has not yet been billed?
debit accounts receivable and debit service revenue
What income statement figures would probably be the best indicator of a compay's future performance?
Income from operations.
Does retained earning always have a positive account?
No. A company with cumulative losses will have negative retained earnings, or a cumulative loss.
The Choice here would be between WAC (Weighted Average Cost) and FIFO (First In First Out)
WAC= The total cost of all inventory on hand (i.e the respective total price)/ # of Units
FIFO= The cost of the latest sold item of inventory is the price of the oldest inventory on hand
Now depending on the way inventory purchase prices change the effect on net income could be either positive or negative .
If the oldest items of inventory are cheapest (as can be assumed as the norm) then FIFO would lead to a higher net income in the current period than using the WA method- whereas if the oldest items where the most expensive the opposite would be true.
However over many periods or years this effect would be eliminated. (As the FIFO cost of a set amount of inventory would continue to rise/fall where the WAC method would remain stable.)
Note: LIFO (Last In First Out) is still used in the US and Japan despite it being a means of Tax avoidance- IFRS has banned the use of LIFO.
The above, while perhaps a possible definition of EBT, is inaccurate. The financial accounting (GAAP) which EBT is one heading for, has NOTHING to do with determing taxable income under Tax Accounting. The person is also confusing taxable sales with the term income. Net Taxable Sales is generally used in the context of Sales Tax.
Gross sales = all possible receipts.
Exempt sales = receipts that weren't sales taxed (because the item isn't taxable
(say food), or the buyer was able to exempt it (as in purchases
for resale). This is subtracted from Gross.
Returns & Adjustments = adjustments, normally subrtractions, for return sales where
tax was refunded.
Brings you to net taxable sales = the amount of sales a tax was collected or is due on.
Will preference share capital be deducted while calculating net assets?
As per Companies Act 1956, Preference share capital is regarded as Capital of the company and not Loan. In view of this, it is not to be deducted to ascertain net assets. This is in turn depend on the purpose for which netassets is being ascertained.
What is more profitable high contribution margin ratio or low?
Higher. It's your TR minus your Variable Costs over sales. So if you have a higher revenues coupled with low costs, you will have a higher contribution margin and more profitable.
What effect does depreciation expense have on net income and cash flow?
Depreciation Expense reduces net income and has no effect on cash flow.
What is a revenue expenses report?
A revenue expenses report is a listing of all expenses an organization incurred during a specified period, usually a month, quarter, or a year. One example of n expense is rent, utilities, etc.
What is depreciation of fixed assets?
Depreciation is the method of allocation of part of cost to all fiscal years to which fixed asset is used for revenue generation to income statement
Does free cash flow valuation analyze an investing opportunity?
A free cash flow valuation can sometimes be used to analyze an investment opportunity. However, there are usually better ways to analyze the investment opportunities.
How do you account cash sales return?
[Debit] Sales return
[Credit] Cash /bank
[Debit] Sales
[Credit] Sales return
A combined financial statement of a parent company and its subsidiaries is called?
a consolidated financial statement
How does equipment affect cash flow?
Purchase or sale of equipment has direct relation with cash flows if the process is completed with cash that is, if equipment purchased with cash then it will reduce the cash and if equipment is sold in cash then it will increase the cash but if equipment is received or paid for goods or services then it has no direct impact on cash flow.
Cost of depreciation assets and accumulated depreciation is same as accumulated depreciaton calculates how much depreciation is charged till date while remaining is current book value of assets.
How do increases in the retail and wholesale margin affect the unit contribution?
What About drop shipping?
What is the function of the accounts office?
To ensure that financial events are accurately and appropriately recorded in the company's financial and or financial statements.
Why would people disagree with a proposed accounting standard?
Despite of having AASB 138 and compliance of IAS 38, there is so many back draws and there is a necessity for a standard for intangible assets. Specially, when talking about softwares, there is a big point to think about and realize that this standard can't be sufficient for accounting of softwares which are not integral to the operation of related hardware. There is a problem in accounting for internally generated brands which might have a useful life and a value yet it cannot be accounted. "Wallman (1996) provides several reasons to account for this distortion. The rapid acceleration of events that may significantly affect share values makes the system of annual and quarterly reports obsolete. It is hard to obtain a satisfactory picture of anything that is moving so quickly and changing so often when only snapshots are taken at relatively long intervals. Traditional financial statements are now significantly less reflective of the assets that create wealth than in times past. It has also become a formidable task to define the outer edges of companies. Historically, the resources that produced the wealth were 'hard' or tangible and were recognised in the financial statement as assets or costs. However, the shift to a knowledge-based economy has created, or focused, increased attention on entirely different categories of resources. Intangible resources, such as brand names, intellectual capital, patents, copyrights, expenditures for research and development and human resources, are generating an increasing amount of our overall wealth. Nonetheless, these 'soft' resources are only given minor recognition in today's financial statement." Wallman perfectly shows the value and need of recognition of such "soft" resources which are generally given a very minor recognition in today's financial statements.
When reported in financial statements a lifo allowance account usually?
Indicates the effect on income if LIFO were not used.
