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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
Why does the financial statement called a general purpose statement?
General purpose financial report(GPFR) is a financial report that is required by the government or accounting professional groups to be prepared by every firm.
The aim of that is to give general information about the firm,and it could give some information for the user to make decision, as there are many different info-based users who deponds on the GPFR, which definitely could not give the comphrehasive information to help those people to make decisions.
But the objective is to make it a little useful to
every potiantial users, that's why it's called general purpose financial report.
Why you need financial statement audit?
Audit and especially internal audit is defined as an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
Is an owners drawing part of the balance sheet?
Yes owners drawing account is contra account to owners equity and closed to owners equity account at the end of fiscal year.
Accounts receivable are reported on the balance sheet at?
Accounts receivable shown in balance sheet at assets side under current assets section.
What is the effect on cash flow on increased trade receivables?
It has reverse effect on that and it will decrease your cash flow.
Who sets accounting reporting standards for the government?
If the entity is a state or local governmental unit, it is subject to the reporting standards and requirements of the Government Accounting Standards Board.
What is the journal entry to increase retained earnings?
To increase RE, depending on the account (e.g. Depreciation - Depr.) that caused or lead to the need to increase RE, you DEBIT Retained Earnings (RE).
RE XXX
Depr. XXX
Methods of preparing statement of Cash flow?
Following are methods:
1 - direct method
2 - indirect method
Equipment A NPV = 75000 - 120000 = 45000
Equipment B NPV = 50000 - 84000 = 34000
Based on NPV Equipment A should be selected
Is royalty expense an operating expense?
Yes. This will form part of operating expense classified under non manufacturing cost since this is not directly attributable to the product.
What are the object and stages of cash flow statement detail?
Main purpose of cash flow statement is to show the cash inflows and outflows from different business activities.
Stages are as follows:
- Cash flow from operating activities
- Cash flow from financing activities
- Cash flow from investing activities
What do you mean by credit balance in profit and loss Ac?
credit balance in profit and loss a/c is loss
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What is the journal entry of asset acquisition in ledger accounts?
debit fixed asset
credit cash / bank
How do you calculate the degree of solvency?
Degree of solvency can be calculated using the formula Degree=(assets on a solvency basis-reduction+special amortization payments)/(liabilities on a solvency basis-reduction). Here reduction is said to be the sum of interest on transfers and contributions, plans, voluntary contribution and plan's defined contribution component.
What is a normal balance for stockholders equity?
Stockholders equity is the amount invested by share holders in business and it is liability of business that's why it has credit balance as a normal balance.
Where do you go to find check stub for church's employee?
The church employee in question is a good place to start.
Credit sales with tax journal entry?
ht tp s:/ / y a z i n g. co m /d ea ls /c re dit r e p air / ki mit o
REMOVE THE SPACES
Worth of fixed asset after depreciation?
definitely the worth of a fixed asset decreases after charging depreciation on it, because the efficiency of the fixed asset decreases with the every next financial year.
