Financial Statements

Introduction expenditures

price at which goods are sold is called selling price

Donation A/c Dr.

To Cash/Bank A/c Cr.

If the company's gross income does not increase, but you add employees, then the next reporting period most likely will show a loss of net income. However, if adding employees causes a company to increase revenues, financial reports might show an increase in net income.

This question needs more specific information to provide a specific answer about how employee number will affect net income.

longer than 3 seconds

Loan repayment will reduce the amount of loan liability from liability side of balance sheet as well as reduce the cash or bank account as the payment is made through bank or cash.

General entry is as follows

[Debit] Long-term loan xxxx

[Credit] cash / bank xxxx

According to their annual report, Target generally uses the accelerated depreciation method.

It is prepared by the companies to show that how cash inflows and outflows are arrived from different business activities.

in double entry book keeping transactions are recorded under two heads in jornal balance sheet is prepared from trial balance liabilities are on left side and asset on righ

t side

Retained earnings is that portion of net income which is not available for distribution to shareholders and shown in equity section of balance sheet as addition to capital.

net income (loss) less dividends

A fixed deposit in the name of a firm is not a fixed asset.

Double cash book is a financial book where both the income and expenditure of a company is maintained.

The IRR assumes all cash flows are reinvested at the IRR. All you need are the property cash flows and the initial outlay to solve the equation. So, it is a simple and objective calculation. For reference, the calculation is as follows:

NPV = 0 = CF0/(1+IRR)^0 + CF1/(1+IRR)^1 + ... + CFn/(1+IRR)^n

The MIRR assumes that positive cash flows are reinvested at a reinvestment rate. MIRR also assumes that negative cash flows are financed by the company at a finance rate. For reference the calculation is as follows:

(( NPV of positive cash flows at reinvestment rate ) /

( NPV of negative cash flows at finance rate ))^(1/(n-1) - 1

This makes MIRR unsuitable as an industry standard.

First, different firms have different reinvestment rates and different finance rates. So, MIRR cannot be used to compare investments purchased or sold by different companies.

Second, the rates will change over time, thus making it impossible to compare MIRR's at different intervals.

MIRR is best used internally by a particular firm choosing between several investments at a given time.

Debit:Partners Capital

Credit: Accounts Payable

Depreciation is an expanse on fixed asset for the period ended and is recorded in profit and loss accounts at year ended. it will come in operating expenses and should be deducted from gross profit of the company.

Absorption costing income statement is that statement in which overheads are charged to units of products based on predetermined blanket rate.

capital stock is liability for business and like all other liabilities it is also shown under liability section of balance sheet.

Business entity convention

The business and the owner must remain separate

the answer is 0.50

Simplicity, knowing year in and year out what the amounts will be is easy to record and easy on the auditors and accounting department. Forecasting for financial statements and budgeting are all simplified by use of SL Depreciation.

Much of philosophy is concerned with morals and ethics. Accoutancy is all about - or should be all about - ethical accounting of business transactions. The current malaise in the financial markets shows that morals and ethics have not been as prominent as they probably ought to have been in the minds of many people.

INTEREST ON LOAN NEVER GOES TO THE BALANCE SHEET AS IT IS A REVENUE EXPENDITURE. IT WILL SHOWN AS AN EXPENSE FOR THE FINANCIAL YEAR AND DEBITED IN PROFIT AND LOSS ACCOUNT BEFORE ARRIVING AT NET PROFIT.

MOHAMMED ASIF

MUSCAT

Mohammed,

You are an idiot. Yes it does as interest payable. How do you pay for it? Obviously with cash. It therefore flows through the balance sheet. What state are you from so I can have them take away your cpa license. Chances are you don't have one.

Joe Bob

Interest paid on a loan does not go directly on the balance sheet as correctly stated by Muscat and instead is seen as a line item on the profit and loss statement. Indirectly however, paid interest is a reduction of cash (cr entry) and owners' equity (dr entry) which obviously effects the balance sheet.

Unpaid accrued interest can however be seen on the balance sheet as a short-term liability. Accrued interest in the case of a term note represents interest unpaid from the last note payment to the ending date of the balance sheet. For example, if the last note payment was on 12/20/y0, the balance sheet would show 11/31th of the interest associated with the 01/20/y1 note payment in accrued interest.

So... be nice; both of your answers have a component that correctly answers the question.

Regards,

MJG

Summarize all open vendor invoices. Generally catagorized by invoice date grouped in 30 day increments