Financial Statements

The sum of customers unpaid balance or balance of account receivables in the General Ledger usually comes from a subsidiary ledger which contains an individual account receivable for each customer, the total of these accounts are summed and placed in one single account in the "general ledger".

no

Liabilities section and Equity section.

I can think at least several possible answers off the top of my head you already had an enough excess to cover the decrease; you cut expenses, you added credit options to for consumers to pay for goods or services. you paid off some large capital expenses incurred for start-up or (infrequent recurrent expenses) , a grant that allows release of funds based upon reaching certain milestones, investments realize a profit some business entities (this is all that kept some afloat during the current recession or economic turndown); an increase in in-kind donations , gifts our awards, improved purchasing practices, eliminating goods or services that lost money or were marginally profitable, utilizing these savings and reallocating these resources to expand in areas that yield quicker and/or have a larger profit margin, if you are in a company where cost centers are used to separate monies to compare how one service is performing ( for example to split the cost of office space utilites and supplies between several different services or departments review the allocations REVIEW to be sure they are accurate and if need be make the changed I did this moving all my staff out of a facility shared with another program and moved my staff in to some of my existing space within the corporation and saved my program @180,000 a year(cost shiftiing}It is a good practice,on a regular basis to review how your expenses and revenue are being allocated anyway especially if your program//dept. etc. is growing quickly. I took over management of a service one time, where the allocations for space/utilities,etc. had not been updated in 10 years. It's hard to manage without valid information. These days we are expected to do more and more with less and less. It's called "working smarter"

Net profit can be increased by income from non operating activities of business like dividend income or interest income etc.

What is the meaning of Freight.

Cost of goods sold is current asset until it is sold and generate sales revenue and shown under current assets portion of balance sheet.

it is fixed assets.

Spending money, but rather than cash, you use a non-cash asset of value. For example, companies that give there employees stock options are incurring a non-cash expense.

The General Ledger provides all the information you need to prepare a Post Closing Trial Balance as well as a Trial Balance, etc.

A post closing trial balance is a trial balance that is prepared "before" accounts are closed out for the accounting period, such as expenses, revenues, etc. Adjusting entries are made to the General Ledger from the Journal entries and then a PCTB is prepared using the information obtained in the Ledger.

True: In double entry accounting the debits and credits must balance.

For every action there is an equal and opposite reaction: Meaning, if you debit your cash for $1500 there has to be a credit that equals the same amount.

Remember the accounting equation: Assets = Liabilities + Owners Equity

Let's look at a few scenarios of why we might have received $1500 cash and the accounts they would be posted to:

1. We received $1500 cash for services rendered (revenue) our entry would be:

Cash (debit) $1500

Revenue (credit) $1500

2. We received cash from a customer who purchased merchandise on account, our entry would read:

Cash (debit) $1500

Account Receivable (credit) $1500

3. We Invested $1500 of our personal money into our business: the entry will be:

Cash (debit) $1500

Owners Equity (credit) $1500

As you notice there are always an equal debit to a credit, even if more than one account needs to be used, once such scenario, say we paid $1500 for Phone and Rent and we want to record the transaction as one, we'd use the following journal entry:

Phone Expense (debit) $300

Rent Expense (debit) $1200

Cash (credit) $1500

Notice that even though we used three separate accounts, the debits and the credits always balance for a total of $1500

the moment the transaction occurs not when you receive the money

The Answer is NO. Direct costs are direct cost which can be clearly/economicaly identified with the cost object, indirect costs cannot be traced to a specific cost object, based on the definition direct cos cant be an indirect cost (Misdhaaque Ahmed)

UNSUCCESSFUL

debit loan account
credit asset account

If paying right now:

Debit Employee Reimbursement Expense

Credit Cash

If recording to pay at a later date:

Debit Employee Reimbursement Expense

Credit Accounts Payable (to the employee)

Yes

Yes because a quick ratio doesn't include inventory which must be sold before it can be used to pay for the companies current obligations. Of course you have to collect the cash in A/R before it can be used to pay for current obligations too but AR should be able to be converted to Cash much quicker than Inventory.

A Cash Ratios, which doesn't include AR or Inventory is an even better measure of a firms liquidity than both the quick and current ratio.

Formula for calculating average Contribution margin

Average contribution margin = total contribution margin / total number of units

Debit combined assets
Credit combined liabilities

Statement of financial position (Balance sheet)