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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
What companies use the direct method for statement of cash flows?
I don't have a comprehensive list, but I can cite one direct method cash flow example - EMC Corporation (ticker NYSE: EMC). I too would welcome a list if anyone has one.
What normalized means in financial term eg normalized capital?
Normalised capital normally refers to working capital.
Normalised working capital is the average working capital requirements of a firm for ordinary trading using the past 12 months as a guide. It is used by financial buyers of a firm to determine the cashflow of the business which will have a direct impact on the ability to pay for the purchase and hence the value placed on the business.
R. Terhorst
Do Assets always equal the financial interest of creditors plus the financial interest of the owner?
I am wanting you to provide an answer
Sales is an asset or liability?
there are Five basic account heads in accounting, which are given below:
- Assets
- Liabilities
- Capital (Owners Equity)
- Expense
- Revenue
and sales belongs to Revenue.
If looking at the Accounting equation: Assets = Liabilities + Owners Equity.
Capital, Expense and Revenue are all sub categories of Owners Equity. If sales is revenue then it would fall under Owners Equity.
In QuickBooks
The Statement of Owner's equity is a component of the Balance Sheet Financial Statement. There is no separate report available in QuickBooks with this title.
Owners Equity is a term applicable to Companies that operate as a:
- Sole proprietor (only 1 owner to the business), or
- Limited Liability Company(LLC)-with only 1 owner
-an LLC company owner has improved liability protection over a sole proprietor
You can find the balance sheet report in QuickBooks under the Report Menu > Company & Financial > Balance Sheet Standard.
The balance sheet will display one day in time, but you can modify the date range in the report button bar located at the top left hand region of the report which will provide the change in owners equity based on the date you select.
You can customize this report to include only equity accounts:
Click on the Modify report button > click on the filter tab > click on Accounts and select the "all equity accounts" > click OK
You can memorize this report for easy retrieval by clicking on the memorize button on the report button bar.
Hope this helps,
Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
Intuit Solution Provider
http://www.qbalance.com
We provide hands on training in QuickBooks and QuickBooks Enterprise to Medium and Small Businesses.
Describe the diffferences between financial statement income and taxable income?
There is some difference in financial statement income as well as taxable income as in financial statement income there are items which are not allowed by tax authorities and main item is depreciation. Other factors are that tax is deducted on income which is received while in financial statement income included revenue which is not received or accrual items that needs to be adjusted as well that's why financial statement income and taxable income is not same.
How does dividends affect net income?
Dividend payments do affect net income indirectly. If a company pays a dividend, cash is reduced. This cash can no longer be used to generate profits. That is why 'cash cow' companies pay out the bulk of their profits as dividends (few or no new investment opportunities available) and growth firms retain all profits.
- Cash flow from operations
- Cash flow from financing
- Cash flow from investment
Number of engineering hours is a likely cost driver for which value chain function?
to design function
Why do people simultaneously hold financial assets and liabilities?
It is not simultaneously hold, it is created. When capital is introduced, it is a liability to the business, and the cash introduced in the form of Capital is an Asset. Similarly simultaneously both assets and liabilities are created pr affected in every transactions.
Question is not clear and some mistakes in figures:
Gross profit based on Sales of 35050 is as follows
35050* 65% = 22782.5
Gross profit based on Sales of 35950 is as follows:
35950*65% = 23367.5
Schedule 6 part 1 of Indian companies act?
part 1 schedule 6 contains the model balance sheet of the company
it shows how different items in the asset side and liability side should be arranged
all companies shuld follow that
The Company whose shares are not listed on a recognized Stock Exchange (For Eg, NASDAQ) is termed as an unlisted company.
Such companies are also termed as privately held companies.
Why is stock a current asset on the balance sheet and not a fixed asset?
If you are talking about stock that the company in question has issued, then it is not an asset at all, but rather a component of owner's equity. However, shares of stock in other companies that have been purchased are in fact current assets.
The idea is that if a firms needs to make payments to suppliers, lenders, etc. they can sell stock and turn it to cash immediately. This is typically not the case with fixed assets.
Investments in stocks are highly liquid. Fixed assets are typically depreciated over time (except land) and are not expected to be sold within a year. While some stock investments might end up being longer than 1 year, it is advantageous for firms to classify them as current assets.
Financial analysts usually look at current assets to see how quickly a firm can meet its financial obligations. Lenders like to see firms with substantial current assets - this means that they are liquid.
An independent auditor is asked to express an opinion on the fair presentation of financial statements because a company may not be objective with respect to its own financial statements.
When petty cash falls under the accounts payable umbrella what guideline should be set?
when petty cash falls under the accounts payable umbrella, what guidlines should be set?
sales
less: slaes returns
less:cost of goods sold
opening stock
purchass
less:purchases returns
add:carriage inwards
less:closing stock
less:drawings
gross profit
add:discount recievd
less:carriage outwards
wages
discount allowed
rent
insuranc
sundary expenses
proprty tax
NET PROFIT
A cost statement refers to the breakdown of the cost for the final cost of the services to be analyzed for a particular period of time.
Management of the Company and those charged with Governance.
Where does 'ordinary share capital' go on a balance sheet?
Ordinary share capital is shown under equity section of balance sheet as all kind of capital is shown in equity section
Is book value an estimate of an asset's fair market value?
Not necessarily. Book value is the basis of the item less accumulated depreciation. Book value is rarely the actual cash value of an item, any item. Book value has to do with accounting and taxes, not sales price or actual cash value.
What does cash flow per share mean?
Cash flow per share means how much any company has earned cash flow per outstanding share same like net profit per share which is as follows:
cash flow per share = total cash flow / number of outstanding shares
What is a differential cash flow?
Differential cash is the difference in cash due between selecting between different alternative options or projects.
