Financial Statements

In the liability section of the balance sheet. Generally showing short terms portions separately from long term portions.

There are a great many challenges that you have experience in your current position. You may have had to deal with the death of a boss for example as your biggest challenge.

the difference between income derived from the viewpoint of maintaining financial capital (as in historical cost accounting) and income derived from a system of ensuring that physical capital

Control accounts cannot get into a trial balance because that would be tantamount to double entering the figures though individual accounts and then throuhg the trial control accounts.

Yes, if the computers are used to run (operate) the business in question they are a part of the PP&E on the Balance Sheet.

No. There could be missing entries or entries that were not correct (wrong amounts, duplicates, etc.)

Effect of exchange rate changes will be shown under "Cash & Cash Equivalents - at [opening]". We will also show such item under the Heading of "Cash flows from operating activities" for the unrealized gain/loss on foreign exchange.

Accumulated depreciation is the amount of a long-term's asset's cost that has been allocated to depreciation since the time the asset was acquired.

It depends on the type of discrepencies, most accounting disrecencies are due to the lack of accuracy (decimal places) when breaking down a large figure. Although more deciaml places in your calculations can help solve discrepancies it can look rather unsiglty on a report.

Property, Plant, and Equipment (PPE) are items that are vital to a business operation. Usually these assets cannot be liquidated quickly.

Such items would be the property the building is on, the building, and machinery used in production.

Furniture, fixtures, and Equipment (FFE) are things that are not attached to the building. Examples of such items are desks, lighting fixtures, and computers.

Main advantage of using reducing balance method is that it uses the high value at start of life of asset while low value in later years when asset is not working at 100% capacity.

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income statement

Tangible asset

1. Over expansion: When a company increases sales, it needs increased capital to support the additional cost of overheads associated with the extra sales i.e.

a) Carrying extra stocks

b) Transportation of finished goods

c) Financing high levels of debtors

2. Depletion of working capital caused by

a) High taxation which reduces profits available for reinvestment into the biz

b) Over-investment in fixed assets

c) Excessive drawings or dividends

d) Premature repayment of long term loans

e) Diversion of cash to other businesses

f) Making losses

No

Cost accounting is usually involved with management accounting. Financial accounting tends to deal with the past and presents information like statements for public and private use. Management.Cost Accounting related to accounting methods and techniques used by managers to operate their firms. Examples include raw materials, labor and manufacturing overhead management. On the other hand,... Simple answer: They both provide useful information to users. Thus is the true goal of accounting. Cost accounting users= managers Financial accounting user= shareholders

Yes, at the end of the year you take the difference between the interest revenue gained and what would have been gained if the investment had the present value interest. For a discount, the difference will be credited against the discount received.

Accounts receivables (net) + Inventory - Account payable - Accrued expenses

Reporting Currency

Intangible assets are reported by a company if they meet certain criteria. For example, if a company were to purchase a certain technology that it plans to use in its new product, then that technolgical intangible asset would be recorded on the balance sheet of the acquring company. However, if a company creates its own technology it is less likely that they will be able to record an asset for that development, in which case, the costs will be reflected immediately in the Company's profit and loss statement.

Income less Expenses

loan received or paid is part of cash flow from operating activities.

Well if you look at it by the basics you will see both use the same Net income = revenue - expenses. However the income statement for the service company subtracts the operating expenses from the revenues to arrive at net income. The merchandising company subtracts the cost of merchandising from the revenue to arrive at gross profit. It then subtracts all other operating expenses to arrive at net income.