Financial Statements

yes

All the expenses which a business incurred from start of business to actual start of operations of revenue generating activity of business is called preliminary expenses.

[Debit] Depreciation expense
[credit] fixed asset.

The answer is C, it affects only balance sheet accounts.

Prepaid Income is considered current liability as it represents the advances received from customers on account of work to be performed.

There isn't much of a difference between a prepaid expense and a deposit. Both terms are monies that are paid in advance to pay for something. With a prepaid expense, the money pays usually for a bill or utility. A deposit on the other hand, is sometimes given back after the obligation is paid. If it is not paid, the deposit is kept as payment.

Loan acquired to buy an asset is a liability of business so interest incurred on that loan is also part of that loan and that's why it is also the liability of business.

No profit or loss from sale of fixed asset goes into income statement while the cash proceeds goes to cash book.

Mezzanine level items would typically be items between Equity and Liability. Some items that might fall in this category are Auction Preferred Shares (in mutual funds) or noncontrolling interest in subsidiaries. As noncontrolling interest does not meet FASB definition for Liabilities and are not part of Equity.

it is debited to Trading A/cas carriage inward here rule debit what comes in credit what goes out applies

true!

because we get the benifit of such expenses in future

When your liabilities are greater than your total assets you are said to be "in the red." This is because negative numbers in a ledger are traditionally written in red.

As capital budgeting involve decision making which is for long term time period that's why time value of money imprecations are included while calculating capital budget and that's why present value of actual cash flows are used rather the real value of cash flows.

Technically, only until the full balance of the debt is paid down to $0. However, some debts are considered open ended, such as credit cards or other lines of credit. While you may not actually owe any money on a credit card, for example, the line of credit is open until you have formally closed it, meaning that you will have access to borrowing money when you need it.

No, they're very different

EBITDA of 512,725.50 - EBIT 362,450.20 = 150,275.30 Depreciation

Cash flow of 34,846,125 - 150, 275.3 Depreciation = 34,695,849.70 Net Income

do some research

The question is incomplete. Anyway i will try to answer. Balance sheet prepare from Tial balance. All the items in Trial balance classifeid as Balance Sheet item and P&L item. All the balance sheet items taken from trial balance should be shown in balance sheet. Balance sheet have two side namely liability and asset side. In asset side we shows Fixed asset say plant machinery vehicle...., current assets say stock debtor cash in hand etc...The fixed assets can we shown two ways, before depreciation and put provision for depreciation in liabilty side or After depreciation. The next step is to create liablity side say capital, creditors...etc. The Net Profit taken from p&l a.c adjusted with partners current account. This is only for basic information.

Depreciation or Amortization.

Anything that cannot be touched is considered intangible, so like electricity is intangible and does software is still intangible. To read further...

The trouble is personal property law - whether Roman law or common law - developed in an era when not only was software unknown or unimaginable, but when even intellectual property such as copyright was unknown. It is only in the last few centuries that the law has recognised that property can subsist in any intellectual assets at all (as distinguished from intangibles such as debts). This law has developed in a piecemeal way so that only some species of intellectual assets have the status of property. The law has yet to adequately catch up with other intangibles such as electricity and now software.

It is time to reform the law of personal property to accommodate computer software. The attempt to side step the personal property conundrum by categorising (at least some) software as a service has only led to legal confusion and undesirable international trade implications. The law now needs to recognise a tertium quid between things in possession and things in action.

percentage-of-completion method

13603.22