Financial Statements

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!

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

Yes accrual are part of balance sheet as accruals deals with future activities and all future actives are dealt by balance sheet.

Financial Statements

net new equity is given by the formula; new equity-old equity- addition to retained earnings

Carriage outward refers to the cost incurred by a business when transporting goods from its premises to customers or other destinations. It is recorded as an expense in the accounts, typically under shipping or delivery expenses. This detail provides a breakdown of the transportation costs associated with delivering products to customers or transferring goods to other locations.

1. Balance Sheet

2. Income Statement

3. Cash Flow Statement

4. Statement of changes in equity

why is financial statement analysis part of business analysis? Please answer this question, I'll need it this answer!

Yes it is correct as cash flow statement only deals in cash so non cash items should be eliminated from cash flow statement.

Accounting is the present participle of account, or the development and use of a system for recording and analyzing finances.

Investors look at financial ratios to understand how businesses are performing. They use this information to determine whether they would like to invest or not.

To calculate the sales revenue, the sales returns and the allowances must be subtracted from the old value. Sales revenue has a normal credit balance, meaning that a credit to a revenue account illustrates an increase in sales.

Unearned revenue is only shown in the liability side of balance sheet and it is only shown in income statement when it is actually earned until then it will only shown in balance sheet as liability

Any transaction that gets reflected on the Balance Sheet will impact both sides of a balance sheet. Balance sheet represents what the company (an entity) owns and owes (to shareholders and debtors).

If a transaction results in increase in assets (what it owns), the funding for it will come from investor and equal amount reflect on fund raised. You should not get confused with situation where both the impacts are on the same side which does not results in change of 'size' of balance sheet. For example you sell an asset for and receive cash. Then asset will go down and cash asset will increase. Both the changes are on the asset side. Another example on liabilities side would be raising equity to payback debt.

Thus moral of the story is that size of the balance sheet is same on both the sides. So a transaction either changes two sub-accounts on assets side/ liabilities side resulting in no change in the balance sheet size or it will affect both the sides equally resulting in balance sheet remaining 'balanced'

false, it is a summary of the three things

a properly formatted journal entry should have a space (can be one) between the end of one day and the beginning of the other. Beyond that it is up to you how you space your running entry.

the debits and credits equal in general ledger

It is very simple:

consolidated financial data: One a parent company posts/files its combined financials that is parent's data as well as subsidiaries data collectively (Summed) that is Consolidated Financials.

Non/Un-Consolidated Financials: When Parent company posts/files its financials separately that is stand alone financials of parent and side by side its subsidiaries data.

useful management information

If preparing for first year of business then there will be no retained earnings balance available otherwise it can be found always if in previous years not paid full income to share holders.

no.capital is not a liabilities .capital is a amount which is invest in a business

If company sales are increasing but gross profit as well as net profit is declining, it means that sales are not increasing as rapidly as company costs and expenses are increasing.

A thorough review should be conducted to analysis the situation and selling price should be adjusted according to increase in cost prices.

Cashflow 101 is an educational tool in board game format designed by Robert Kiyosaki (author of Rich Dad, Poor Dad), which aims to teach the players concepts of investing by having their money work for them in a risk free setting (play money) while simultaneously increasing their financial literacy and stressing the imperative nature of accountability.