Financial Statements

Debit Loan account 2000

Credit Wages account2000

Through audit planning, the Company can foresee the future market potential and plan its strategy accordingly right now so that they can capture market share of its product at a faster pace.

Accumulated depreciation as well as any loss on disposal as well as if any cash received these three accounts are debited.

The cash flow statement as the name suggest only recognizes transactions that involve the movement of cash. eg. cash/cheque receipts, payments

Bad debts written off does not involve any movement of cash. You neigther receive cash nor pay cash... therefore, it is an non-cash adjustment


Hope this helps!

A company can change its method of providing Depreciation,

(a) If it is necessitated by Statue or standard, or

(b) If it would result in more Appropriate preparation or presentation of Financial Statement...

From a financial reporting standpoint, no. Cost of Goods Sold (COGS) is shown on the income statement below sales as a deduction to calculate gross profit. Expenses are shown as a deduction from gross profit to calculate net profit.

I remember that day as if it were yesterday

no. it appears on the debit column on the balance sheet

Land is the only fixed asset which is not depreciated because land never depreciates or wear and tear occur rather it always appreciates.

No real accounts are for business possessions like assets and stock

revenue and expense items are recorded in the nominal also named the general ledger.

Personal accounts are for debtors and creditors accounts.

You can find help for cash flow problems at Ehow, Inc, Tuto 2 U, Company Rescue, Entrepreneur, Business Know How and Sme Business Finance websites. You can also look into payday loan stores.

The answer is neither one. Accounts receivable are a current asset; neither an intangible asset (e.g. goodwill) nor a fixed asset (e.g. plant and equipment).

This phrase may mean that reserve fund contributions are being deferred while also being considered as assets. Your financial advisor can help you understand how this phrase is being used for your association's accounting.

Investment from factory owners is equity and it is shown in balance sheet of business.

Normative theory in accounting is theory about how net income 'should' be calculated. Positive accounting theory on the other hand is about observing/explaining and predicting accounting choices of.nature of accounting theory is 2 type 1. is positive theory and 2.normative theory IFRSs refers to the new numbered series of pronouncements that the IASB is issuing, as distinct from the International Accounting Standards (IASs) series issued by its predecessor. More broadly.

Revaluation surplus is deducted from net income in case of net cash flow from operations using indirect method as this is not a cash related transaction.

manages the budget,cost, and accounting functions for the base

Debit is the left side of accounting statement and Credit is the right side of accounting statement. By debit we mean something comes inside the organization and by credit we mean, something goes outside the organization. That means debit means inflow and credit means outflow. For Example, we write Accounts Recieveable at, cash in hand, cash at bank, and assets at the left side of accounting statement as debit and write Accounts Payable, Bonds Payable, Bills Payable and other liabilities at the right side of accounting statement as credit. Hope answer the question

A decrease in net profit margin means that the business is spending a lot of money on its expenses. The business may still have a high gross income.

Journal and Ledger are the main source of Trial Balance

if this is a homework, or take home test question then please open your textbook and do it yourself. trust me, your only hurting yourself.

Which of the following represents the correct way to account for depreciation on the books

Net Income zero means firm has at no profit no loss position and it does not means loss to company.

Formula for net income is as follows:

Net income = sales - expenses

net income = 45000 - 25000

net income = 20000