Financial Statements

increase rent expense by payment amount (debit) reduce cash by payment amount (credit)

Hi,

Dividends are paid out of retained earnings (part of Capital) therefore I think Dividends can not be treated as an expense (the prudence being increase in Capital can not be treated as Revenue thats Cash generation while dividends are Surplus appropriation).

regards,

Zeeshan

depreciation is a source of cash. because we charge depreciation in profit and loss but we added back in cash flow. remember one thing that capital expenditure= amount of depreciation

* One of the main disadvantages of the system is that it only works under some quite strict requirements. If these are not met, the system will become unbalanced and may be quite unusable, or a nightmare to maintain: *

* Standard costs must be reliably estimated and variances kept to a minimum * The premise of the system is that a sale triggers the manufacturing process, therefore * Buildup of work in progress or finished goods needs to be avoided

* Another drawback is that detailed information for management purposes may not be available where needed, and the production control therefore need to be all the stronger. * The cost accounts used in back-flush accounting may be more difficult to reconcile to financial accounts needed for reporting

As a liability. Basically, until you book that money, you owe it back to the customer.

Contributed capital is that amount which owner of business invests in business while retained earning s is that portion of net income which is not distributed as dividend.

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Building is an asset for business and depreciation is only charged to assets of business so in this way depreciation is charged to building as well.

Prior year adjustments

what are the two primary activities of the financial manager that are related to the firm's balance sheet

A historical analogy is a comparison between one historical event or situation and another.

For example, the arrival in the Levant of a large number of immigrants who then take control of the government and marginalize the indigenous population, pushing it into "homelands" with limited economic value, might be compared to similar events in North America and South Africa.

balance sheet

Yes withdrawal is shown with drawing account and drawing account is adjusted with owners equity account in balance sheet.

Stationery, as an accounting item, does not appear on a business Balance Sheet. The Balance Sheet is reserved for assets and liabilities.

The Income Statement reflects income and expenses and because Stationery is an expense item it will appear on the Income Statement and not the Balance Sheet.

J'capital 17000 Revenue 55200 expences 39800 net income 15400 onwer's equity at the bignning 17000 + net income 15400 -withdrawls 9000 net capital 23400

No.

It might either be an asset or liability depending on what type of account information it holds e.g. if it holds a payable information like mortgage approved that await transfer then it is a liability, else for accounts like escrow where in payment is deposited but will be transferred to certain identified GL accounts post approvals, it is treated as a Asset.

An important key to good observational records is use of language. Other people can only interpret the words of the person who was doing the observing.

Such decisions as a rule are left to the bankruptcy court. Generally such action is not allowed as it would be viewed as favoritism to one creditor.

The amount sold after customers' returns, sales discounts, and other allowances are taken away from

gross sales. (Companies usually just show the net salesamount on their income statements, omitting returns, allowances, and the like.)

Net (sales) revenue = (beg+purchases) - end

20%

When owner invests more cash in business it increases the owners capital in business and business becomes more liable towards it's owners.

administrative expenses;

purchase order defined the product which you want directly from the vendor for smooth production.

and purchase work order contains lot of procedure to complete the work