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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
Generally Accepted Accounting Principles Generally Accepted Accounting Principles (GAAP) is the standard framework of guidelines for financial accounting. It includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements. One key aspect of GAAP is an emphasis of "general" as a conceptual realization of variables in method. Far from suggesting that all accounting exercises employ the same method and generate the same results, GAAP accommodates variation in applied accounting methods as long as the methods generally adhere to this set of principles, which are more broad than specific. Pursuant to the foregoing, not only therefore does this provide for variation in method, the natural conclusion is GAAP creates an environment in which financial reporting results can vary depending on purpose. One company in one fiscal year can produce different reports, all completed within GAAP, for different audiences or different purposes, and all these reports can be considered correct.
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What is the difference between ffo and ebitda?
A very crude way of looking at the two is :EBIDTA (-) Interest (-) Tax = FFO.
How do you compute current portion of long term loan?
calculate the principal due in one year together with the interest payable.
Following are example of fixed assets:
1 - building
2 - land
3 - machinery etc
How do you find out if someone has a CPA degree?
What sources can I use to determine if a person has received the degree of a CPA?
In the UK, in a very short answer, a subsidiary undertaking would include entities other than companies. It's an accounting term essentially, used to ensure all subs of a parent company (and not just the companies) are caught in its consolidated accounts.
How do you Calculate Net Profit Margin?
Net profit margin is calculated as net income divided by sales.
How do you calculate an average stock price?
Your answer depends on the period over which you want to calculate the price.
The easiest way is to pick the period, then pick the lowest price and the highest price, and divide the difference by the duration of the period you chose. This method will give you the simplest answer.
How long a unit of inventory sits on a shelf before it is sold is a measure of time. The inventory turnover rate is a ratio that shows how many times the inventory is sold and replaced over a certain length of time.
How do you do the double entry on an Onerous lease?
At the date the lease becomes onerous: Dr P&L Expense - onerous lease. Cr Balance Sheet Provision for onerous lease. Each time there is a rental payment on the lease: Dr Balance Sheet Provision for onerous lease. Cr Cash
How do you calculate beginning inventory?
Resident college grad answers, gross sales minus present value.
How do you prepare a personal statement of financial condition?
To prepare a person statement of financial condition, a person needs to list their assets in one column and their monthly bills in another column. Any money they received should be noted as to the source of that money. They should also include any balances owed for loans, mortgages, etc.
How do you prevent financial statement fraud?
The Statement of Account helps to prevent fraud because it tells you how much money has gone out of the bank.
What is the Journal entry for expenses?
Debit the Expense A/c Credit Cash/Bank/service provider Ex: Salary paid to staff. Salaries A/c Dr 5000.00 To Bank A/c 5000.00
Is it legal to keep two sets of financial records?
Absolutely yes!
Remember that your accountant must present your financial reports to the IRS and your bankers using the rules, definitions and formulas known as Generally Accepted Accounting Practices (GAAP).
However, GAAP is NOT designed to help you make personal or business decisions.
To run your financial life or your business life, you can either develop your own system anyway you see fit, or adopt a model from someone else.
In fact, in business there's a HUGE difference between Financial Accounting (GAAP) and Management Accounting.
In short:
When reporting to the IRS, use IRS formulas and rules.
When reporting to the bank, use the banks rules.
When running your business or your life, use your own rules.
There's no conflict. It's not only legal, it's essential to being effective, efficient, and successful.
What is formula for average rate of return?
Where Equals __
R
Average rate of return Rt Return at time t TNumber of time points Where Equals u Average rate of return Ri i-th return n Number of observations Where Equals __
R
Average rate of return Rt Return at time t TNumber of time points Where Equals u Average rate of return Ri i-th return n Number of observations
Who is most successful player in NBA?
*from NBA.com Shaquille O'Neal 325 lbs Yao Ming 310 lbs Glen "Big Baby" Davis 289 lbs Greg Oden 285 lbs Jerome James 285 lbs Andrew Bynum 280 lbs Kendrick Perkins 280 lbs DeSagana Diop 280 lbs David Harrison 280 lbs Zaza Pachulia 275 lbs Kwame Brown 270 lbs Paul Davis 270 lbs Adonal Foyle 270 lbs Aaron Gray 270 lbs
Define the purpose of accounting and identify the four basic financial statements?
The purpose of accounting is provide information to the users like investors ,financial institutions and to other clients. The four basic financial statements are balance sheet,income statement,cash flow,statement of retained earning.
How do you find the number of ordinary share in balance sheet?
To find the number of ordinary share in balance sheet one must observe all the other numbers and find the mean. Once that is founds than the ordinary share number can be calculated.
How to disclose outstanding letters of credit in financial statements?
it is the credit guarantee issued against the procurement of goods and services from other countries..
