Financial Statements

Simply to avoid taxes

debit column of the income statement and the credit column of the balance sheet.

[Debit] Donated Car

[Credit] Owner equity or retained earnings

The International Accounting Standards Board (IASB) is an independent group of 15 experts with an appropriate mix of recent practical experience of standard-setting, or of the user, accounting, academic or preparer communities.

Source: IASB website

net worth

Cash on hand and in banks

ii. Notes receivable trade

iii. Accounts receivable trade

iv. Securities

vi. Finished goods (including byproducts and work refuse)

vii. Semifinished goods (including parts made in-company)

viii. Raw materials (including purchased parts)

ix. Work in process (including semifinished work)

x. Supplies (including supplementary materials)

xi. Advance payments

xii. Prepaid expenses

xiii. Others

Cost of long term asset is expensed through depreciation in income statement for entire useful life of an asset.

Yes, they would reduce the amount if purchases which is also in Cost of Goods Sold.

An "asset" is a resource controlled by the business from which an inflow of future economic benefits are expected. (These are sources from which you make money.)

A liability is a present obligation from which an outflow of future economic benefits is expected. (You have to pay out for these.)

Having more total liabilities than total assets is referred to as being "insolvent", while having more current liabilities than current assets is referred to as being "illiquid".

Therefore, if you do not have the money-making capabilities to pay back money that you owe, you can not operate as a business.

When your liabilities exceed your assets over a long period of time, this is an indicator that you are losing money in your business.

What actions can auditors take if management refuse to sign letter of representation

It depends on the journal entry and what accounts it would have affected. If it was just a reclassification of say, from one expense account to another, no affect. On the other hand if it were to affect two different classes of accounts, say, an asset and an expense account you could mis-state the balance sheet or income statement or both.

If Opening Stock is undervalued, this will result in your Cost of Sales being understated and therefore Gross and Net Profit being overstated.

Of course, since Opening Stock in this period is the last period's Closing Stock, this would mean that Closing Stock in the last period was understated too, meaning that Net Profit in the last period was understated.

That doesn't make it OK though!

Financial Accounting Standards Board was created in 1973.

The inventory to assets ratio is found by dividing inventory by total assets. This figure shows how much of a business' net worth is tied up in inventory. A lower ratio reflects more positively on the business.

Accrued revenue and debtors are similar in that they are assets. In both cases the revenue is earned before the cash is received, so they present a resource controlled but the entity, which will bring a future economic benefit in the next 12 months. However, they are different in a subtle but different/important way. If the customer has goods and the invoice, then a credit sale has occurred, and a debtor should be recognised. However, if the revenue relates to a transaction other that sales, and the customer has not been sent an invoice, the accrued income has been earned.

Hope this helps :)

balance sheet profit and loss acount trail balance cash flow and funds flow ....are the main

The account form has a horizontal presentation, while the report form has a vertical presentation. Everything else is the same. Same information is provided in both just with different views.

A fixed assets is any item that can stay or remain in the business for a longer period i.e. 1year and in most case they are not meant for resale. when you buy a chair to use in the business it is not meant for sale. Furniture is a fixed asset.

When debentures are redeemed payment is made from a reserve which is created at the time of purchase of such debentures,therefore at the time of payment first it is transferred to general reserve then as it is expenditure to company.

i don't no, but amortization of lease is disallowable expense

As 2 Chainz would say it... TRU

• Sources of Funds: comprises of Liability and Equity

• Application of Funds: comprises of Current and non Current Assets

In financial analysis, you can determine the flow of the costs which are expressed mostly in percentages and/or ratios. Decision-making is highly dependent on financial analysis.

there are two types of balance sheet

1. account form.

2. report form.

On a balance sheet, "accounts receivable" are considered an asset. . NOT a liability.

Think about it . . this is money that is due to the business compared to "accounts payable" which is money due to someone else. . .and thus a liability.