Financial Statements

debit WIP

Credit labor, Raw materials

There is no difference :

DWC=DSO+DIH-DPO --> CashConversionCycle

I believe they would be included in the Investing section of the CF statement. Loan origination or other bank expense fees might be included in the Financing section, but ideally start up costs are a cash-flow directly into your business operations, and therefore an investment cash-flow.

that means Cash should be first. For example, there is a company A. People anticipated that the interest of stock for the company would be 20%. but Actually, people got only 5% after 1year. then what's the point. If they invested money into the govenment's bond, they would have got 7% interests.

Therefore, investor won't take on an additional risk unless they expect to be compensated with additional returns. Only additional cash can be a King.

accumulated depreciation shows the total amount of depreciation charged so it is a contra entry for fixed asset and shown in liability side or in asset side but as a deduction from fixed asset and not in income statement.

The liquidator's final statement of account is the account of winding up.

The money that you invest should be counted as an expense. The income from your investment would be considered revenue.

Capacity cost refers to the fixed expenses incurred by a company in order to maintain and expand its production or service capabilities. It includes expenses related to acquiring, maintaining, and upgrading physical assets such as plants, equipment, and facilities. Capacity costs are incurred irrespective of the actual level of production or service provided and are an essential part of a company's cost structure.

No longer operating as a business, although it may exist "legally".

dont no

manufacturing overheads include all the expenses made in the factory for the production like depreciation, rent paid for the factory, tools used, supervisior's charge, electricity bill, amount paid for motive power etc. It excludes the prime cost ( direct matl, direct labour, direct expenses)...

its good because it help us to know the weight of a things or anything

If GR is increased, then it sure affects the P/L and accordingly added to arive at net PL but when it is decreased then the fund may have been used for investment or so purpose and accordingly treated in which activity it affects...operational, investing or financing...

A bank statement is neither an asset or owner's equity account. It is a source document for the determination of the correct cash in bank balance account of an entity, and after the final determination thereof, the cash in bank balance will be an asset account. The bank statement is secured from the bank where the entiity maintains an account and said statement is being reconciled with the book balances of the company for the said final determination of correct cash in bank balance prior to month end, quarterly closing and annual closing of a company.

It is not necessary to create income statement for one year but even then one year is considered reasonable time period for any type of company to find out profit and loss and for which financial statements can be prepared.

In a footnote

debit stamp age purchase
credit cash

Not normally. In certain cases, a company might have a "capitalization" minimum so that anything purchased below a certain price would be expensed (for example, a $10 trash can). But, in general, if an item meets the definition of a fixed asset and is above the capitalization threshold, the "purchase" would be capitalized (recorded on the balance sheet as an asset), then depreciated over its useful life. The depreciation process would record depreciation expense (debit) and reduce the value of the asset (credit).

there are two methods of preparation:
1 – Direct method
2 – Indirect method

Parent company journal entry

Debit cash | Credit accounts payable - rent

Holding company journal entry

Debit accounts receivable - rent | Credit cash

Prepaid expenses are shown in current assets under assets portion of balance sheet.

yes population is an asset ...but with that on the other hand it is a liability too .... it is an asset because a country's population is meant by the no.of people living in that country ..and if more the people more is the contribution ...and lesser the people less productivity and contribution ...

it is a liability if .the people are not contributing to their country in an effeciet manner ..consumption of human /natural resources is more and contribution is less it leads to underdevelopmaent of that country which is in the hands of the people or the population ...hence proven..

because that is the actual cost paid

Basically, the book tax provision has 2 part - current (what you will pay this year) and deferred (what you will pay in some other period. It is determined using the financial book income. (Yes, there are some things, called "permanent" differences which are past this discussion).

Tax accounting uses different conventions and requirements to determine what "income" is TAXABLE income. So for example, while financial accounting may require a company record an expense for bad debts - using some basis, (perhaps it's past history that some percent of sales are never collected) and that reduces book income that year - tax has a different set of requirements - which says that the expense CANNOT be recoded until it is absolutely realized (an "all events" test, not just an estimate) has been met.

So while over the years, the amount of bad debt (reducing income) may be very, very similar - when it happens is different. So, while the book provision, using book income, records a total tax expense that year which incorporates the booked estimate of bad debt, since tax will not report that expense until a later period and will pay the tax on that income until the tax expense is recorded, the total provision (current + deferred) carries that until tax "catches up" to books (in this case.)

These differences can go either way, and therefore produce a deferred tax asset (something you paid tax on - recognized as income for tax before book, or a deferred tax liability (where say books allowed an expense before tax (as in the above)).

The net position (having a deferred asset or liability) is what is commonly shown on financial statements, although depending on the level of presentation, there may be one line for each - with detail of at least the major items causing the differences, someplace else in the statements.

Mai nahi janta.