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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
Does an accounts payable ledger contain all of the balance sheet and income statements accounts?
No, the accounts payable ledger only contains information related to supplier accounts. The balance sheet and income statement accounts are contained in the general ledger.
Which financials statement does dividends go on?
Indiana unclaimed has a dividend payment to me. How do I get a dividend statement sent to me?
The cost principle is the basis for preparing financial statements because it is?
The cost principles is the basis for preparing financial statements because it is?
B. Relevant and objectively measured, and verified.
When an expense ia paid in cash than net assetts increases and profitnincreases true or false?
1.net assets decreases and profit decreases
2net assets remain the same and profit decreases
True
How do you reduce the non performing assets?
By adoptin proper credit evaluation process. There is no one method for reducing the NPA. Multiple strategies should be adopted from the beginning. The first stage is proper credit evaluation process. It should be based on objective evaluation and the project should be economically viable and technically feasible. Only such projects which can generate income and which RBI has permitted should be financed. Once the loan is sanctioned the post followup should be meticulously followed. Regular monitoring of delinquent loans is essential.
If the delinquencies are due to reasons beyond the control of borrower, for example, as in the case of excess of rains, flood, famine, etc the banker should suitably restructure the loans taking into consideration of the genuine difficulty of the borrowers. Recovery, it should be remembered, should always be at the cost of borrower's prosperity. The recovery process is an ongoing process and it should be professionally handled. My own experience is that if we are honest and keep the interest of the borrower and if the borrower is made to feel whatever steps we are taking is in his own interest he will positively respond. In addition to our honesty and promptness, the language we use while communicating to the borrower also matters very much. The language should be healthy, positive and should NOT blame the borrower directly for delinquency of the loans. That attitude of the banker also matters. M.J. SUBRAMANYAM, BANGALORE
May A CPA be held legally liable due to incompetence?
I'm checking into this very matter right now. It is my understanding that the CPA may be "on the hook" for penalties, fees, and expenses (including legal) associated with the error or incompetence. It is essentially professional malpractice. I just found out today that although I paid for my former CPA to file my 2007 personal taxes electronically, both federal and state, NEITHER were done. I have documentation showing he was paid for his services, and his instructions, which I received from his office, indicating that he was filing both electronically. I have contacted my attorney and he is handling this matter. He is also still in possession of all of my business records & books and will not turn them over to my new accountant, who has been requesting them since July. Sounds like he has something to hide. It's important to mention that I just went through a partnership split earlier this year. My partner was embezzling and my former CPA never picked up on it for 7 years! I finally found the theft myself! This guy needs to be put out of business. Stay tuned for a name after my attorney gives me the okay! Amy Ney Caldwell, Idaho
List the content of a budget manual?
A budget manual is a collection of documents that contains key information for those involved in the planning process. Typical contents could include the following:
a) An introductory explanation of the budgetary planning and control process, including a statement of the budgetary objective and desired results.
b) A form of organisation chart to show who is responsible for the preparation of each functional budget and the way in which the budgets are interrelated.
c) A timetable for the preparation of each budget. This will prevent the formation of a 'bottleneck' with the late preparation of one budget holding up the preparation of all others.
d) Copies of all forms to be completed by those responsible for preparing budgets, with explanations concerning their completion.
e) A list of the organization's account codes, with full explanations of how to use them.
f) Information concerning key assumptions to be made by managers in their budgets, for example the rate of inflation, key exchange rates, etc.
By misdhaaque Ahmed
Do you train your subordinates to understand the business financials?
For one, subordinates is not the professional classification for fellow employees of the same team. The team being the business. Yes, it is important to be a teacher to your fellow co-workers and educate them on the cause and effect of their actions. No, there is no training needed for them. try to put yourself in their shoes, not everyone did the same studies for the same career as you. Educate them on their own level which will be one not of the accounting nature, look back in your childhood, before you knew what 2+2 was .... we were all innocent at one time. It is important that you share with them your job role to better the team and create a more collaborative work environment. Go out for a beer with them after work while your at it ...
What are maturity of fixed assets?
maturity of fixed assets means the completion of useful life of fixed assets.
That is true.
Capital is not an asset for business rather it is liability for business as this is the amount the owner who is separate from it's business invested in business and business Is requires to return it back to it's owner at the time of liquidation.
If theasset turnover of a company is 3.2 the total assets are 32000 what were the net sales?
Formula for asset turnover:
Asset turnover = net sales / total assets
Net sales = 32000 * 3.2 = 102400
Where did loan interest payable go in the income statement?
Loan interest payable is not shown in income statement rather it is shown in liability side of balance sheet in current liability section.
Good financial statement for the quarter (3 month period)
Can you obtain copies of statements for one year on recently closed bank account?
Yes. The bank (or building society) MUST retain copies of all transactions - by law. Even if the account has been closed, there will still be an audit trail for the transactions.
Sales amount required is as follows:
Required sales = (fixed cost + net income)/ contribution margin ratio
required sales = 288000/.4
Required sales = 720,000
Prove:
Sales = 720,000
Variable cost = 60% of sales = 432,000
Contribution margin = 288,000
Less: fixed cost = 160,000
Net income = 128,000
What is differentaite fixed asset from current asset?
Current assets are those which are usable within one fiscal year while fixed assets are usable for morethan one fiscal year.
Where can you check your cash flow valuation for free?
Free cash flow valuation-- the amount of cash flow available in an organization can be found by entering data into software. There is downloadable software programs that can help you determine your free cash flow valuation.
What are accounting processes that are readily performed by a computer?
payroll
Inventory Control
Receivables
Payables Schedules
