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
What should A post-closing trial balance should only contain?
A post-closing trial balance will contain, assets, liabilities and owners equity accounts.
Assets include, current and long term assets
liabilities include, accounts payable, notes payable or any other "liability" the company currently has.
Owners Equity accounts include such things as Retained Earnings and Capital
You generally have 3 versions of a Trial Balance, your Trial Balance, Adjusted Trial Balance, and Post-Closing Trial balance.
The post-closing trial balance is what you use once your expense accounts & revenue have been closed to the income statement.
The Paid-in Capital in Excess of Par Value is increased in the accounting records when?
Paid-in Capital in Excess of Par Value in increased in accounting records when the value of a corporation's shares exceeds the par value of those shares. The latter occurs when investors purchase share from the corporation instead of from other shareholders.
What is financial accounting and what are the terms used in financial accounting?
Financial accounting is a recording, summaring, classifying, communication, anlaysing of business transactions in oder to ascertain the financial position at a given time.
and the trms use in financial accounting are: The dual concept in accounting, that is Debit the receiver's account and credit the Giver's account
Prepayment from customers is it an asset or liability?
It is a liability and refundable to the customer if the merchant fails to deliver the good or service on time.
Which liability account would hold the balance of rent due but not yet paid?
Rent Payable
A payable account is any account that has a balance due that has not been paid yet. Say you owe $500 for one months rent, but want to record it on the books but not pay it, the journal entry would be:
Rent Expense (debit) $500
Rent Payable (credit) $500
It's the same concept as with such payable accounts like, Income Tax Payable, Salary or Wages Payable, etc.
Though it is very uncommon to record rent as a payable, usually it is recorded as prepaid (an asset) or as it is paid, not before.
What is the difference between tangible assets and intangible assets?
We can feel tangible asset,where as we cannot feel intangible asset
In accounts why do you charge depreciation in profit and loss account?
Depreciation is charged to profit and loss because that amount of expense has incurred by using related fixed assets for generating revenues so these are also expenses in sence.
What does embolden the date at the top of the document mean?
When you are asked to embolden the date on the top of a business document as you need to do is highlight the date, hold down the Control/Command key on the keyboard and tap the B key. What this will do is make the date on the document much easier to see.
What measures how effectively a firm uses its assets to generate revenue?
The measure on how effectively a firm uses its assets to generate revenue is the profit margin. This will determine if the firm is running at a profit or at a loss.
Is dividends part of stockholders equity?
1. Dividend is that amount of profit which is distributed to sharesholders of company so it is part of profit and as profit is included in equity same way dividend is also included in equity.
Is commission a selling or administrative expense?
If commission is paid on selling the product then it is selling expense .
Is insurance an administrative expense or selling expense?
Insurance is an administrative expense as administration is authorized to do all these kind of expenses.
How do you double entry on depreciation?
DR. DEPRECIATION EXPENSE X
CR. ASSET X
At the end of the year Depreciation is charged to the Income Statement.
Balance Sheet is Total assets = total liability
N.W.C = Current Assets - Current Liabilities
First find out Current Liability
Current Liability = Total Assets 11,700 - Total Debt Equity 8,500 = 3,200
CL 3,200 + N.W.C 1,400 = 4,600 Current Assets
TA 11,700 = CA 4,600 + OA 7,100
TL 11,700 = CL 3,200 + OE 5,000 + Debt 3,500
The carrying value of a depreciable asset equals?
The carrying value (or book, or, net value) of a long term asset equals cost minus accumulated depreciation.
