Financial Statements

Dividends are subtracted from retained earnings at the end of the period.

Dividend is a distribution of profit to the shareholders. Net income is either retained within the firm (used to fund growth), or paid out as a dividend.

Retained earnings (profits that are retained) increases with net income, and decreases with dividends. Dividends is therefore included on the statement of retained earnings (the actual name of the statement may differ, for example it may be called 'movements in equity').

There may be a liability 'dividends payable' on the balance sheet. This is the unpaid portion (still payable) of the dividends at year's end. It is not safe to assume this equals total dividends (as some portion could already been paid).

salary refers to the fixed amount paid on a weekly, bi weekly, or monthly basis

Full Disclosure Principle

What problem can occur if a student database is not maintained

Investment in stocks is shown under cash flows from investing activities and this activity reduces the cash or it is said to be a cash outflow.

Revenue is the amount of money that is made from all sales. Income is the amount of money that is made after all bills are paid.

The operating cycle approach to working capital includes four key events. They are purchase of raw materials, payment for purchase, sale of unfinished goods and collection of cash for sold goods.

When fixed costs decrease, what does this do for sales?

Finance Manager

Financial Administrator

Ledger Keeper

Controller

Finance Director

Accountant

The Profit Volume (PV) Ratio is the ratio of Contribution over Sales. It measures the Profitability of the firm and is one of the important ratios for computing profitabilty. The Contribution is the extra amount of sales over variable cost. Contribution is also Fixed cost plus profit.

Profit = Sales - Variable Cost - Fixed Cost.

Thus Contribution is:

Profit + Fixed Cost = Sales - Variable Cost.

Therefore PV Ratio = (Contribution/Sales)X100. (This as a percentage of sales)

it is always balance because it depicts the basic accounting equation it means all transactions recorded correctly if balance sheet don't balance it means some transactions missing or there are some errors.

The final account is prepared at the end of each year. It is the combination of the income statement and the balance sheet. The final accounting shows a business where is stands financially and can be compared to past years to see if business and profits are up or down.

I think you would take $820 x .20 = $164.00 Than you would take 820 - 164 = $656 in retained earnings....but I'm not positive

The auditor's report is an authoritative indication of whether or not the company being audited has followed the generally accepted accounting principles. It also gives an indication regarding whether the management is using proper financial reporting procedures.

Creditors use finanical statement analysis because it makes it easier for them.

Balance sheet is used normally for 2 years for comparison to find out the performance of company between 2 fiscal years.

The main categories of accounting include financial accounting, management accounting, and cost accounting. Financial accounting focuses on recording and reporting financial information for external users. Management accounting provides financial information to internal decision-makers and helps in budgeting, planning, and decision-making processes. Cost accounting analyzes the cost of manufacturing a product or providing a service. These categories are interrelated as the information produced in financial accounting is used by management accounting for decision-making, and cost accounting employs the techniques and information provided by both financial and management accounting.

NET WORTH! no one answered our question so I did!

As with financial statements in general, the interpretation of common size statements is subject to many of the limitations in the accounting data used to construct them. For example:

- Different accounting policies may be used by different firms or within the same firm at different points in time. Adjustments should be made for such differences.

- Different firms may use different accounting calendars, so the accounting periods may not be directly comparable.

Some expense that is occur during sales

Stocks are not cash or income, they are an asset. Once they are sold, the value is "realized" in terms of income.

There is a tendency among business houses to rush for more credits. Since all credits bear interest rather on the higher side, there is need for credit control from the management. Effective credit control has a positive bearing on the financial statement with minimization of liabilities and brighter aspect on the asset segment of the company.

An intermediary function is that in which your financial adviser/consultant will help you identify the correct investment or savings instrument for you. Many of the top Institutions only work through intermediary's. An intermediary should be completely independent and with full market availability to help you make a sound choice.

That the total cost of making a product must be less than the price that a buyer is willing to pay for it