0
Financial Statements
A financial statement is a record of the financial activities of a person or business entity where all related financial information are presented in an orderly manner and can be easily understood.
5,583 Questions
It is a documentary evidence for the completion of a Transaction against which the payment is made by the buyer and keeps that invoice for future reference and to present it to Tax Department.. It is necessary that an invoice should be generated against every transaction. It is required by the Tax Levying authorities too.
Limitation of cash flow analysis?
Analyzing a company's cash flow can give you a more detailed view of a company's financial health. A cash flow analysis gives the following advantages;
The cash flow statement is one of four basic statements publicly traded companies are required to regularly release for investors. This statement is broken down into three categories, each with its own subcategory. At the top, you will find net cash from operations. Below that is net cash from financing activities. Finally, at the bottom you will find net cash used for investing.
Net cash from operations represents income taken from the income statement and adjusted for depreciation, amortization, accounts payable and receivable, inventory and other, such as employee salaries. Most companies are in business to earn money from sales, not from their investments. Thus, if the company has more cash from operations than it does from investment activities, it tells you the company is earning most of its money doing business, not just earning interest on its investments.
The cash from financing section of the statement tells you how much money the company has been able to raise through bond issues and loan activities. The more money a company borrows, the more interest it will have to pay in the future. Moreover, paying back loans and bond payments robs the company of its ability to take advantage of future opportunities, so the less money the company raises through financing, the better.
The investing activities section of the cash flow statement tells you how much the company earned in interest on its investments as well as what types of investments it has made. If the company earns most of its interest from bank deposits and bonds, there is very little chance the company will benefit from future growth. However, if the company has invested its money into business capital, such as new plants and machinery, it may mean they will experience future growth, which can be reflected in higher future stock prices.
Where do rent received go in the income statement?
If rent received is of this financial year it enters in the I/S under Revenues. If it is prepaid, the amount prepaid is deducted and entered in the SOFP under Current Liabilities as Prepaid Rent Receivable
Company's Total Assets Turnover Ratio is 5 and Equity multiplier is 1.5 times which is cal. as Net Sales/Total Assets and Total Assets/ Shareholder's equity resp. for the two ratios.
What is the difference between Net income and Net income available to ordinary shareholders?
i don't now u ask some one with brains for all i care
p.s. i like pie
Do you report unearned revenue on the income statement?
Unearned revenue is liability for business as amount is received but services are not provided that's why it is liability until it is earned and shown in balance sheet.
Requires that accounting standards be followed for all significant items?
Requires that accounting standards be followed for all items of significant size
What financial statements should be saved for personal records?
- Bank records
- Pay receipts/stubs
- Credit card statements
- Receipts on large purchases
- Income tax deductions, such as: Medical bills; Payment made to your tax preparer for next year's tax, since it is tax decudtible; Alimony/child support payments; Business related travel expenses that are not reimbursed by your employer;
What is the difference between net ordinary income and net operating income?
Net income refers to all income minus expenses and taxes. Ordinary income refers to all income other than capital gain. Therefore, net ordinary income is income, with the exception of capital gain, after expenses and taxes are deducted.
What represents the profits from revenues after deducting only the cost of goods sold?
After only deducting cost of goods sold from revenues is the Gross profit which is the difference between revenues and cost of goods sold.
What is subscription expense in accounting?
A subscription expense is a regular expenditure on a predetermined basis for a necessary business cost. For example, many auto repair shops lease repair information software that continually changes due to new vehicle rollouts...they don't purchase the software but subscribe to it on a monthly basis of XXX number of dollars...
How do you report Capital Expenditures in a cash flow statement?
Capital expenditure is shown under cash flow from investing activities as a cash outflow.
Trailing any financial data simply means that instead of reporting a period as a total, you show the value as a smaller increment up to the current. so for example if you showed cash flow for a year on a budget item you would show the month cash amount for the 12 month period individually. that would be 12 month trailing cash flow for period end 'whatever'
Does loan go under income statement as an expense?
No, it is a liability and goes on the right side of a balance sheet.
How do you present management accounting information?
The best way to present management accounting information is in a spreadsheet. Spreadsheets keep the information organized, so that anyone, even outsiders, can interrupt the information.
What financial statement would you analyze to determine if a company distributed any of its profits to its shareholders?
What is an acceptable cash flow to debt ratio?
What is target cost and how is it determined?
Target cost is the maximum or target price of product on which product is sell and it is determined by competitors or market condition and then company tries to reduce it unnecessary costs to acheive target price.
What kind of account is rent collected in advance?
Rent collected in advance and not due yet is the current liability and shown under liabilities section of balance sheet until it is actually due.
Looking for payroll office for dollar tree stores?
what is the number for dollar tree payroll department
What is the current portion of long-term debt classified?
The current portion of long-term debt is classified with the ____
Does the choice of cost flow method affect the statement of cash flows?
no only the method of preparing the cash flow statement can not change the actual cash flow it is just the preference of preparation.
Whats the formula for Contingent liabilities as a percent of Net Assets?
contingent liability =Bank Guarantee+other bank Guarantee+bill discounting+Letter of credit
