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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 is the journal entry for mortgage loan in accounting books?
For a mortgage payment, the only amount that should be listed in the Mortgage Loan Payable section is the principal amount. Any interest that has accrued is reported as Interest Payable.
Is payment of wages to employees capital or revenue expenditure?
Payment of wages is classified as a normal running cost of a business, so is stated under revenue expenditure. I got really confused with this one aswell. Anything that is paid regularly and is not a fixed asset or any costs associated with a fixed asset, is capital e.g machinery, improvement, legal fees, delivery. Therefore wages is revenue expenditure, hope this helps.
Do IFRS require a classified balance sheet?
Pargraph 54 of IAS 1 Presentation of Financial Statements outlines the minimum requirements for the line items that must be presented on the face of the statement of financial position (balance sheet). This includes items such as cash, property, plant and equipment, provisions and financial liabilities.
The balance sheet is usually presented categorised into current and non-current assets and liabilities, unless a liquidity basis of presentation provides "information that is reliable and more relevant", in which case information is presented in order of their liquidity (see paragraph 60 of IAS 1). Banks and other financial institutions commonly adopt a liquidity basis of presentation.
What describes the investing activities as shown in the statement of cash flows?
The Statement of Cash Flows includes three different types of cash flows:
- Operating,
- Investing, and
- Financing
Investing cash flows involve investments in other companies or investments in long-lived assets. They include:
- Purchases of long-lived assets;
- Proceeds from selling long-lived assets;
- Purchases of investments in other companies; and
- Proceeds from selling investments in other companies.
What is the traditional method of cost accounting?
The traditional method of cost accounting refers to the allocation of manufacturing overhead costs to the products manufactured. The traditional method (also known as the conventional method) assigns or allocates the factory's indirect costs to the items manufactured on the basis of volume such as the number of units produced, the direct labor hours, or the production machine hours. We will use machine hours in our discussion. By using only machine hours to allocate the manufacturing overhead to products, it is implying that the machine hours are the underlying cause of the factory overhead. Traditionally, that may have been reasonable or at least sufficient for the company's external financial statements. However, in recent decades the manufacturing overhead has been driven or caused by many other factors. For example, some customers are likely to demand additional manufacturing operations for their diverse products. Other customers simply want great quantities of uniform products. If a manufacturer wants to know the true cost to produce specific products for specific customers, the traditional method of cost accounting is inadequate. Activity based costing (ABC) was developed to overcome the shortcomings of the traditional method. Instead of just one cost driver such as machine hours, ABC will use many cost drivers to allocate a manufacturer's indirect costs. A few of the cost drivers that would be used under ABC include the number of machine setups, the pounds of material purchased or used, the number of engineering change orders, the number of machine hours, and so on.
What is conventional accounting?
Conventional accounting is a method generally used by the managers within a company. It focuses on aspects such as decision-making, the future of the company, and timeliness. This method gives the managers a better idea of the current company situation and how it affects finances in the future.
On loss income money do we pay taxes taxes on it?
Generally, if you have NET income after deductions and losses, you pay tax.
Where do you list pending law suits in financial statement?
A pending lawsuit would not affect the financial statements. However, if the company is paying extra for lawyer fees and other expenses related to the lawsuit, then these expenses would be recorded in expenses.
The lawsuit would only affect the financial statements if a settlement is made and the company has to pay, another expense.
Population is an asset to the economy rather than a liability Explain?
yes, population can also taken otherwise...
that is positive side..
as its knwn that Indian working population is about 402 million. and its estimated to grow upto 820 million by 2020.
so potential work force is going to b double in next 12 years.
moreover. huge population creates demand..and it is major indicator of economic growth.
Are Sales Assets or Liabilities in terms of account Trial Balance?
Neither. Sales will be listed as an income statement account on the firm's trial balance. Once the accounts are closed at year end, sales will be closed into Retained Earnings.
nope
What does physical resources mean?
what a business needs to carry out its activities. they include things like buildings and machinery.
it is included in cash flow statement
Can you explain operating expenses?
Operating expenses,within the business context means those expenses that are directly related to operating the business.For example
- a business needs to pay its staff wages or salaries
- a business uses water and electricity and has to pay for these
- a business uses stationery and has to purchase these
true
Why will cash flow ending balance not equal cash and bank balance in the balance sheet?
Cash balance from cash flow statement should always tally with balance sheet cash balance otherwise it means that cash flow statement is not prepared accurately and proper investigation should be launched to check the discrepancies .
Is retained earnings a permanent or temporary account?
Retained earnings is a temporary account which needs to be closed in owner’s equity account at the time of liquidation of company as it is part of owner’s equity and ultimately closed to owner’s equity account.
......Slshk, yikes. Not sure, maybe ask someone else, this is very tricky. D:
Thanks, good luck!
Difference between Accounting Concepts and Conventions?
Concepts tend to be written in the accounting standards whereas conventions are not and are assumed.
Examples of concepts would be: Accruals concept, Prudence concept.
Examples of conventions would be: double entry, accounting equation (assets - liabilities = capital)
Causes of international differences in financial reporting?
- == Cultural environment across the countries:
Economy plays a big part in the different accounting practices, when an economy is low there is more chance for fraud and dishonesty. This is when the rules and regulations should be tightened. As far as the legal system difference, different countries find different types of fraud and crime, so the legal system has to fit that pattern.
Describe accounting for cash and Short-term-investment?
ACCONTING IS TRUE SENSE OF THE TERM IS PART OF EVERYBODY'S LIFE. KEEPING TRACK OF YOUR DAILY EXPENDITUREN IS AL SO ACCOUNTING. OR ACCOUNTING SYSTEM CAN BE DEFINED AS A INFROMATION SYSYTEM WHICH HELPS TO ANALIZE THE TRANSATIONS THAT THE BUSINESS IS ENTERING INTO, HANDLE ROUTINE BOOKKEEPING.
What is a Accounting entry of inventory donated?
You will first need to determine the fair market value of the donated inventory. Once that is figured, you will debit donations and credit revenue.
Decrease in accounts payable is shown as a decrease in cash under cash flows from operating activities because cash goes out when we pay the accounts payable.
Does Noodles and company offer online pay stubs?
What app do you use and where do you go on the app to figure that out?
