Financial Statements

Rent is not a balance sheet account, it is an expense, hence an income statement account.

Net Worth Per Share= (Total Assets-Total Liabilities)/No of Shares Outstanding

The Income Statement must be prepared first because the Current Profit or Loss (from the Income Statement) is needed in the Equity section of the Balance Sheet to make it balance. Also, the current profit or loss is the starting point to calculate Cash from Operations needed for the Cash Flow Statement.

When it is sold.

No it doesn't include

the number is negative.

The cost of the car, the sales tax, any dealer fees, delivery fees, added equipment, etc. You would not capitalize anything that represents a recurring cost such as a one year registraion fee which will also be paid in subsequent years.

in a trial balance sheet are is a debit credit or liabiltiy

Product catalogs often provide a "list price" for an item. Oftentimes those list prices bear little relation to the actual selling price. A merchant may offer customers a trade discount that involves a reduction from the catalog or list price. Ultimately, the purchaser is responsible for the invoice price, that is, the list price less the applicable trade discount. Trade discounts are not entered in the accounting records. They are not considered to be a part of the sale because the exchange agreement was based on the reduced price level.

The value of a writing desk with an Albert Pick Furniture Company label may be worth $1600 if it is sold to an antiques dealer or collector. The condition of the desk also affects its value.

I would recommend checking the Web site for your state Department of Transportation or Department of Motor Vehicles. They might provide a search feature or will give you details on how to obtain motor vehicle reports for company drivers.

debit cash
credit share capital

No, they're not the same thing. Gross Margin is revenue minus COGS (cost of goods sold). Contribution Margin is revenue minus variable costs (such as materials and labor that go into making the product). It shows you how much of each dollar of sales varies with the amount of sales, and thus, what percentage of each dollar of sales is left for fixed costs. This is the definition that I've understood. However, it's confusing even as I write it because the difference between them seems to imply that there are (or could be) variable costs below the gross profit line. Or maybe there are some fixed costs associated with costs of goods sold and that's why the distinction should be made above the gross profit line. If anyone has any contributions (no pun intended) that can clarify this, I would appreciate it. ---- Another way to distinguish between the two is by using these definitions. Gross Margin = Revenue - Full Absorption Cost*Contribution Margin = Revenue - Variable Cost *Full absorption cost being defined as the sum of the fixed and variable overhead, direct labor, and direct materials costs.

• Balance sheet being a statement has no 'debit' or 'credit' sides that is why 'To' or 'By' words are not prefixed to the name of accounts.
• Balance sheet is prepared at the end of an accounting period - it is for a particular day, so it disclose the financial position on a particular day and not for a particular period.
• Balance sheet disclose how much business owes to others and how much others owe to business.
• The total of 'Assets' an 'Liabilities' sides are always equal.

You can amortze a prepetual sw lisc over its useful life.

The statement of retained earnings is a business statement that illustrates the total retained earnings by a company at the end of a period.

Basically the statement starts with retained earnings from the previous period, then adds any gains (on investments) and subtracts any losses (dividends declared, goodwill, discontinued operations). You are then left with the retained earnings for the current period.

In terms of public companies, if your cash balances are too high (effectively earning almost nothing), the shareholders will criticize management for not putting that excess cash to use, to grow the business. In the absence of investment opportunities, the shareholders will want the company to use the excess to pay dividends or to buy back stock. In the second case, assuming the market doesn't react negatively to the buy-back, each share of outstanding stock is worth more. because earnings haven't changed, but the number of outstanding shares has decreased.

Unfortunately, their is no single optimum cash balance, because the answer is dependent on so many variables, many of which may or may not apply to any particular business. For example, if you are a professional services firm, for example a law firm, you typically bill for your services after the services have been provided. Of course, the lawyers who did the work, have to get paid their salaries on a regular basis, in many cases, a long time before those billings (now accounts receivable) have been collected. So, if your outstanding receivables average 60 days, ideally, your minimum cash balance would be about two months of expenses. This is usually too high though, for several reasons. Some of your cash needs could be supplemented with a bank working capital line of credit, which fills in cash flow gaps, like the scenario I just mentioned.

Of course, your cash requirements may also be lower because you are still collecting receivables from one and two months ago.

The above is just an example. Really, the best way to approach this problem is to look at similar businesses in your industry (financial information on publicly held companies is always available through "Google Finance" and other sites). There are other services that provide information on privately-held companies, which is not available to the public, so these services can be pricey.

Start with the public companies - size doesn't matter, because you will be converting your statements and the public statements to what are referred to as "common-size" statements. You should be able to download balance sheets to an Excel spreadsheet, and choose as many periods as you can. Then convert each number in the financial statement to a percentage. Each asset is divided by total assets, and each liability is divided by total liabilities and equity. Total assets should be 100% and total liabilities and equity should total 100% Do the same with your own statements, using as many years as you can.

What you have just down is revised the balance sheets of the public companies to enable you to compare them to yours. Despite some outliers, you will most likely see a patter develop (example: companies in my industry tend to keep cash on hand equal to approximately 8% of total assets), a kind of rule of thumb that you can adopt and change as needed. Google finance can give you all the data for an entire industry segment, for which you can do the same things.

That's a great way to start. And one to build a cash projection around.

I don't know . If I know how am I are searching online everywhere

debit house rent allowance
credit cash / bank

Depreciation Expense

Income Statement

The income statement summarizes the results of the company's operations.