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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
Accrued payroll is a payroll which are due but not yet paid for example in a company mostly salaries for previous month are paid on first of every month so on last day of the month salaries became due to pay and those payroll is called accrued payroll, it means benefit of which has already taken but actual cash is not yet paid and it is reverse of advance or prepaid expenses.
Assuming you are using the straight line method, the depreciation expense in the first year is: cost - residual value, divided by the economic lifetime
= (5000 - 0) / 3 = 1666.67
Why do manager need accounting information?
the management of any organization make key decisions in the area of planing, organizing, controlling and budgeting. therefore information are needed in these areas.
management needs to plan what objectives of the organization should be and how these objectives would be achieved. once the objectives and plan of an organization have been determined, the management is in position to determine the tasks that will be performed. after this has been done, the implementation of the work plan aimed at achieving the set objectives in the planning stage. during the implementation of the work plan, the performance of such organization must be reinforced to ensure that plans are being put effectively into practice.
What accounts are affected when recording cash received from clients for fees earned?
When are product costs expensed on the income statement?
When the product is sold and has left the finished goods.
What is the meaning of Scrap Value in accounting?
scrap value is the residual value of an asset. the valu of an asset which exists after its estimated life period
How do you label negative retained earnings on a balance sheet?
The term "Retained Earnings" is generally used to describe that portion of stockholders equity derived from profits. (An older term, no longer generally in use, is "Earned Surplus".) Retained earnings represents the accumulation of earnings less dividends since the beginning of the company or accounting entity. In successful companies the retained earnings account normally has a positive balance; but if total losses should exceed total net income it is possible that the retained earnings account could have a negative balance. This is generally known as a "DEFICIT", in answer to the question.
Are there any guidelines for expense reports?
Every company has their own guidelines for the information they want shown on an expense report. In general, most expense reports are created in a spreadsheet to easily show related expenses in category such as lodging, air travel, mileage, etc. Some reports are submitted monthly, but many are submitted weekly. The main purposes are to:
1) reimburse staff for their out-of-pocket expenses related to their job, and
2) to have costs offset related revenue in the same time period.
Expense reports may be audited by the IRS, so it's important to have a clear purpose stated on the report, dates, clients visited, etc.
How do we Critically evaluate accounting theory?
- The theory can be evaluated by reference to empirical evidence, that is, by conducting a research to observe, collect, and analyse data
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How logical does it appear?
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Do the premises, when viewed together, seem to be logical?
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When considering the logic of the argument we must be careful to consider whether our acceptance of an argument has been influenced by any “dishonest tricks” Illustrated in page 21 of your textbook.
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If the logic of the argument appears to be based on some key assumptions, are we prepared to accept these assumptions?
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Have the proponents of a theory provided evidence to support it?
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Are we satisfied with the evidence presented, and the way it has been collected?
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Do our
colleagues or mentors use the theory?
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Whether previous researchers with publications in a given area have used a particular theory?
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Also, if we use one theory in preference to another, will this impact the possibility of getting the research published?
What aspect of the balance sheet includes the amounts invested and the profits the company made?
Of the three major sections - assets, liabilities, and equity - investment and profit both appear in the equity section.
They are reported in the period in which cash is received or paid
Does loans and advances are the part of current assets in balance sheet of accounting?
Loans and advances are those amounts which company provided to its employees or other related stakeholders so it is part of current assets.
Does increase in inventory increase cash flow?
Increase in inventory reduces the cash flow because by paying cash company purchases inventory.
Is common stock listed on the balance sheet?
Common stock is the other name of capital or equity of company so it is shown in balance sheet under equity section.
true
Explain how outsourcing effects the pro-forma income statement?
Doesn't it affect it in the cost of goods sold? Outsourcing should impact direct labor costs and manufacturing costs as well as direct materials costs if in the manufacturing industry depending on what was outsourced.
Can you refer books in detail for basic accounting to financial statements?
If you are looking for a college level book to follow: Crash Course in Accounting and Financial Statement Analysis, 2nd Edition
Matan Feldman
Arkady Libman
ISBN: 978-0-470-04701-9
Accounting Principles, 7th Edition, with PepsiCo Annual Report
Jerry J. Weygandt, Univ. of Wisconsin, Madison
Donald E. Kieso, Northern Illinois Univ.
Paul D. Kimmel, Univ. of Wisconsin-Milwaukee
The revenue budget primarily comprises Government
revenue receipts like tax and expenditure met from the revenue.
The tax revenues principally constitute yields of taxes and other
duties imposed by the Government of India.
Balance sheet for the last 5 years of Amway corporation?
I want to see the balance sheet of Amway Corporation
How you can deal with organization costs in the financial statements?
Organization costs are capitalized under Other Assets (non-current) and amortized (written off to an expense account) over a period of time, usually 60 months.
Where is the amount of merchandise inventory disclosed in the financial statements?
Amount of merchandise inventory is disclosed at the bottom of the financial statement under balance sheet.
Can general reserve be negative?
Yes it can. If it is negative it means the business has a cumulative loss. It has the effect of reducing the owners' funds in the balance sheet.
How do you calculate net income from balance sheet?
You can't ! it's a function of the Profit and Loss Statement. Income from previous years will appear on the balance sheet...but Net Income is a P&L Function.
