Financial Statements

The amount of the purchases for a period is presented in

The net income from the income statement is used in the retained earnings statement.

Internally generated goodwill is never capitalized, purchased goodwill is capatalized on the consoilidated balance sheet.

Something stinks. Here's my story. At 11:30 pm on Friday, June 5, 2009, I logged on to my credit card account with Chevron to pay the bill which was due tomorrow - Saturday, June 6, 2009. Imagine my surprise when, a half hour before the beginning of the day my payment is due, I find there is a $25.00 late fee on my account. For a payment that is due TOMORROW!!! Looking back through my records, the exact same thing happened in August of 2008. Our payment (in full) was paid ONLINE with a printed receipt showing it paid at 5:00 am on the day it was due, which was long before close of business no matter where in the United States they or I were located; it also was on a Wednesday, so not even a weekend delay could be blamed. I complained to Chevron that my payment was made long before close of business on the due date/day; this was their response: <b>"Our records indicate that the payment in question was <u><i>applied</i></u> to your account on August 7, 2008 ... As this payment was received after the payment due date [of August 6, 2008], a late fee has been added to your account and a monthly billing statement has been generated. ... However, in the interest of customer service and goodwill, we will credit your account for any late fees that are assessed. ...</b> [Emphasis mine.] I have <u>no</u> control over when they PROCESS my payment; they could sit on it for a week and wait for the due date to pass before posting it, yet they were willing to work <b>"with"</b> me <b>"in the interest of customer service and goodwill ..."</b> !!! I would add that we have been credit customers with Chevron for at least 20 years, have always paid our bill on time and, with very few exceptions, have paid the bill in full, without carrying a balance from month to month. I let it go after getting the late fee removed last August. But since this has happened again, and is even worse this time as the payment was made the DAY BEFORE the due date and the account already shows a late fee assessed, I am sensing something shady going on. I plan to go back over all the statements I have kept with a fine tooth comb and filing whatever complaints with whatever agencies I can to stop this practice. I have kept a screenshot (in addition to my printed receipt showing the payment made the day before it was due) for my records. Everyone in this county and across the world are in financial trouble, but Chevron appears to have a plan to get themselves ahead of the game: by committing fraud against its consumers.

Share capital is equity in the company. It is money raised by the company in exchange for issuing ownership of shares. Working capital is the money that is borrowed from a bank for a business to pay operating expenses.

need more of your articles on monetary theory

It depends on the client, the size of the client and on who is requesting them. A set of financial statements for a public entity (SEC traded stock) will have far greater and more detailed required disclosures than will a closely held corporation, as will a governmental or non-profit entity. Governmental and non-profit entities have similar requirements, but typically governmental entities will have many times the required information that a non-profit organization would. Again this is all predicated upon size, industry, ownership, etc. As an example Sears, Inc. and John Doe's Hardware Store, Inc. are going to have different reporting requirements from lenders and governing bodies. Sears has the SEC, stockholders, lending companies, bond issues, etc to deal with and each will have detailed requirements as to what they need included in the financial statements, which will be required to be audited. John Doe only has to deal with himself and perhaps a lender - who will probably be satisfied with a compiled Balance Sheet and Income Statement. GENERALLY, a balance sheet and an income statement will be prepared, and, depending on the level of the engagement a statement of cash flows and footnotes. But as I said above... it depends.

Balance of drawing account is write off against owners capital at the end of fiscal year. Journal entry is as follows:

[Debit] Owners capital

[credit] Drawings account

A variable asset/liability and a commodity.

Sundry creditors created when goods purchased on credit and it is normally for short term credit that's why it is current liability.

after income statement, before the balance sheet

You record he credit entry for transaction (a) 5/1 in the journal as

Gross profit = sales - cost of good sold

Gross profit margin = gross profit / sales *100

Gross profit = 240000- 108000 = 132000

Gross profit margin = 132000/240000 *100

Gross profit margin = 55%

Normally the company accountant or financial director would file a companies assets and liabilities.

[Debit] Cash xxxx

[Credit] Bank xxxx

no

Revaluation reserve is an intangible asset so it can't be part of tangible net worth . anjan

revenue expenditures are recorded in "income statement" as revenue expenditures are those expenses, benefits of which has already taken by company in full.

Cost of sales is the expenses to earn sales so cost of sales and net sales are not same, formula for gross profit is as follows:

Gross profit = Sales - Cost of sales

The difference between an exposed net asset position and an exposed net liability position, is that an exposed net asset position occurs when a company's trade receivables and other assets denominated in a foreign currency are greater than its liabilities denominated in that currency. An exposed net liability position occurs if a company's liabilities denominated in a foreign currency exceed receivables denominated in that currency.

Proforma:

Description of financial statements that have one or more assumptions or hypothetical conditions built into the data. Often used with balance sheets and income statements.

Example:

Provided to show rent or income projections (typically it is the NOI - Net Operating income - that is looked at in this application) upon acquisition of Commercial Real Estate or a Business, so as to justify the obtaining of financing for the purchase - Used to demonstrate the Borrower's ability to repay the loan based on income projections taking into account Mortgage or loan terms, and actual or projected income based on reasonable and qualified assumptions.

Wages payable account is shown under liability section for those wages which are due but not yet paid

it occurs when you debit what you should have orignally credited and credit what you should have orignally debited ..... by doubling the amount in order to receive the correct balance in your tial balance

Lets say if your fryer breaks down or you get a flat tyre, that is irregular cash flow because it is not an expected cost!