0
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
Expenses are always shown in income statement if expenses are already utilized but if expenses are paid already and are utilizable in future time period then they are asset.
1.When production cost of goods are become higher.
2.Hike in interests on secured & unsecured loans, debentures and dividend on share capital.
3.when debtors balances are unable to collect in time and those balances turned out as sundry bad debts.
4.when payments were not made in credit period.
5.Increase in staff, facilities (Administration, Operations & Manufacturing).
6.Increase of Dollar price in international market comparative domestic currency value (In the case of purchases made from foreign and has to pay in dollars).
7.If the Net profits of orgn. not reached up to expectations.
8.Inflation (required hike in salaries & other benefits).
9.Decrease in the assets value (Current & Fixed).
10.Increase in the raw-material prices & other transportation expenses.
11.Competitive market- some times we have to sell our products less than the production cost, due to competition.
12.and many more.................
Is an asset a cost that will be matched with revenues in a future accounting period?
Some assets will become costs in a future period such as Inventory and Prepaid Expenses. Fixed Assets will be depreciated in future periods. However, assets such as Cash and Accounts Receivable do not represent future expenses.
How would you value a company without earnings?
you can't it shouldn't even be a company because it will go down in money from all the bills , and they will go in debt, shut down, and the company would die
Do you want Gross profit rate high or low?
Higher gross profit indicates high profit margins which is good!
What fixed assets do cosmetic artists use?
Cosmetic artists use the following fixed assets:
* Vehicles (for cosmetic artists on-the-go; typically custom vans and custom trucks)
* Furniture and/or fixtures (generally specialized and/or customized)
* Property (for cosmetic artists that work out of a specific location - clients go to them)
Suspense a/c Dr 2000
To Equipment a/c 2000
How do you record adjusting journal entry for credit sale?
Type your answer here... party a/c Dr. to sales
Liquidity
You have the first part right, current assets is cash or anything that can be converted to cash in a short period of time, however, that is "not" five years, a current asset must have the ability to convert into cash within ONE YEAR or LESS. Anything above one year is a fixed or long-term asset, not a current asset.
Is Loss on Sale of Asset a Equity account or Income Account?
Loss on sale of asset reduces the actual profit of company that's why it is a part of income statement and shown as an expense to business.
What is the difference between a Revolving Fund and a Refund?
A revolving fund is continuously replenished as funds are withdrawn. A refund is a complete repayment, or payback, of a certain amount of money.
Does customs duty come under direct expense?
I was look for the answer to this very same question! And I found it:
"Customs duty comes in two types: Import Duty & Export Duty. Duty paid on goods imported from Abroad is known as Import Duty and is debited to the Trading A/c but Duty paid on goods exported expense connected with sales, is debited to profit and loss account, so import duty on goods purchased from abroad is a direct expense and export duty on goods sold is indirect expense."
What is the journal entry for shares redeemed for less than issued capital?
debit share redemption account
credit cash / bank
credit profit on share redemption
What effects do bad debts have on net profit and net loss?
Bad debts are those accounts receivables which have created due to credit sales to customers so if company unable to collect these it will reduce the net profit of company or in case of actual loss it will increase loss amount.
First you record the 100000 as an incoming capital then an entry of expense for the sum of 30000 for the equipment and then recording the equipment as an asset obtained with the value of 30000
Net income the same as net earnings?
Earning is more in sense of sales revenue while net income is different in this sence that it is the difference between revenues or earnings from expenses.
Where does Prepaid Interest comes in a balance sheet?
prepaid interest is that amount of interest which is not due but paid in advance as it is not due yet it is current asset of business and it will be shown in current assets section of balance sheet.
What do the fieldwork standards under GAAP require?
The fieldwork standards address what is required when actually performing the audit work.
