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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
Invested $1500 to start the business plus supply value $500. what is the accounting journal entry for this problem?
ballance sheet is to gave information about asset,liability,and capital(owner equity is called ballance sheet.
or:
show the financial position in a particular period.
the difference between the beginning and the ending cash balance on balance sheet
How do you calculate fund flow statements?
Funds flow is just traditional NI + D + I / debt ...it doesn't take into account any changes in cashflow caused by A/R, INV, AP changes...
Are salaries listed on the balance sheet?
Salaries are part of income statement if paid while if not paid then payable will be shown in balance sheet.
True or false revenue is a decrease in owners equity?
False, as revenue increases the owners equity if expenses are less than revenues and vice versa.
How do you work out cost of goods sold?
The cost of goods sold depends on (1) the inventory system used, and, (2) whether or not a cost flow assumption is used (and if so, which one).
Inventory systemsThere are two inventory systems: the perpetual inventory system and the periodic inventory system.
The perpetual inventory system
With the perpetual inventory system, the inventory is updated with every purchase and expense. This implies that cost of goods sold is increases with every sale, at the time of each sale. The cost bases depends on the cost flow assumption used (see below)
The periodic inventory system
With the periodic inventory system, purchases are expensed, while with sales, cost of goods sold is not calculated. Hence, there is no system in place that can tell how much inventory there is.
The inventory is counted at the end of the period. At this point in time, the cost of goods sold can be computed.
Because:
beginning inventory + purchases = ending inventory + cost of goods sold
this implies:
cost of goods sold = purchases + beginning inventory - ending inventory
The end of period count is a physical count. The $ value of the goods depend on the cost flow assumption (discussed next)
Cost flow assumptionWhen goods are similar in nature (the company is trading coffee, oil, etc), the company can decide to assume some 'flow' of the goods for cost purposes. Common assumptions are:
LIFO: Last in, first out: the most recent purchases are sold first
FIFO: First in, first out: the oldest inventories are sold
Average cost: An average cost is computed
The alternative is 'specific identification', meaning that no cost flow is assumed but the actual cost for the goods is determined (this requires some sort of information system).
The cost of good soldDepending on choices (1) for inventory system and (2) cost flow assumption different values for cost of goods sold and ending inventory can be possible.
For FIFO, the perpetual and periodic inventory will lead to the same cost of goods sold (as well as ending inventory value).
For LIFO (as well as average cost), the cost of goods sold could very well differ for the perpetual inventory system and the periodic inventory system. With the periodic inventory system the cost of goods sold is determined at the end of the period. This means that for example purchases after the last sale are included for determining the cost of goods sold. This is not the case with the perpetual inventory system. With the perpetual inventory system this is done for each sale at the time of sale.
Does the statement of cash flows classifies cash receipts and payments into four categories?
i have four years of balance sheet and income statement and now want to prepare cash flow statement from assets
What will be sales if gross profit 25 percent and cost of goods sold -100000?
Sales = Cost of goods sold / 75%
Sales = 100000 / .75
Sales = 133333
Prove
sales = 133333
Less CGS = 100000
Gross profit = 33333 (25% of sales)
Outstanding Checks = $323.14
Current Bank Balance = $232.54
Outstanding Deposits = $125.98
Final Balance = Current balance + Outstanding deposits - outstanding checks
= 232.54 + 125.95 - 323.14
= 35.35
The final balance on Kenneth's account will be $35.35
The difference between the list of all direct expenses and direct income?
Additional detail: Direct income is the income u earn from what you're in business to do or any services performed, eg a salaried individual's direct income is the
salary which come at the end of each month.
Indirect income may be coming from your investments you
have on Equity or bank deposits or any other source, this
kind of income can be fixed or variable.
another example would be a man works on an assembly line trading labor for money. The man’s child is fed and clothed by usage of this income. The man has direct income; the child has indirect income.
Is inventories considered an asset or liability?
Inventories are those costs the benefits of which has to be taken by company in future time period while payment made already as these are part of future revenue generating activities that's why inventories are assets of company.
What is difference between Statement of works and a contract statement of work?
The differences between a Statement of Work and a Contract statement of work. The Ã?Statement of WorkÃ? covers all requirements, the performance and the design requirements for a particular project. It also defines what the responsibilities, work agreements and liabilities that are established between the clients and the service provider. A Ã?Contract Statement of WorkÃ? is a description of services, products or the end result as described in a contract.
Customer will raceive RM1000 as a net balance receivable from bank
Is the acquisition of non current assets included in the income statement?
Acquisition amount of purchase of non-current asset is shown in balance sheet while any profit or loss incurred for purchase of assets is shown in income statement.
What is a proportion of a company profit paid to stockholders?
The proportion of profit paid to share holders is not fixed it depends on company policy as well as situation as well if company has feasible investing opportunities then it will opt for no dividend or if no opportunity then it may opt for even 100% dividend to shareholders.
What is the difference between general and administrative expense and overhead expense?
General and administration expenses are those expenses incurred to run day to day business activities.
Overhead expenses are factory expenses incurred to run the day to day activities of running production process.
