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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
Yes, it may arise on unrealised profit on unsold stocks, profit element of upward review of assets.
Total manufacturing cost and cost of goods manufactured are used interchangeably?
No! Total Manufacturing Cost (TMC) is : Direct Materials Used (DM Beg. Bal of DM+Purchases+transport in cost-returns-End balance of DM) + Direct Labor + Overhead Applied = Total Mfg. Cost
COGM: TMC (from above) + (beg. Work-in-process - end work-in-process) =COGM
Why is it necessary to have alignment in financial reporting?
To know about the importance of their roles
June has total assets worth 5123.44 and total indebtedness of 1258.04 Calculate her net worth?
3865.40
Where does the suspense account fall under trial balance?
A suspense account will be reported in the trial balance same order of your General Ledger or chart of accounts if there is a balance. However, most of the suspense accounts are nominal or clearing accounts meaning temporary and it will be closed every closing or at the end of the year.
Amounts owed to a vendor is it a liability asset revenue epense or divedend?
Anything "owed" is a liability to the company until it is paid.
Gathering what I can from the question, I am assuming the "vendor" would be a person/company that supplies a product that another company resales for profit. In other words it is their Inventory, When the merchandise is recieved, at the moment of receipt if the amount isn't paid and is put on account (owed) then journal entry is a
debit to Inventory
credit to Account Payable.
Since this is a debt it is recorded as a liability, once it is paid however, the transaction goes as follows
debit to Account Payable
credit to Cash
The inventory itself remains an asset until it is sold, then the asset decreases and then and only then is the cost initially paid recorded as an expense.
What is the primary criterion for the preparation of managerial accounting reports?
meet managers need
How do you record long-term assets?
Long-Term Assets, aka Fixed Assets are recorded on the Balance Sheet under PP&E or Property, Plant, & Equipment.
For Example, a truck purchased for use in a business for the amount of $5,000 would be a Fixed Asset and the transaction (if paid in cash) would be..
PP&E
Equipment-Truck (debit) $5,000
Cash (credit) $5,000
Long term loans are repaid from what source of cash flow?
Long term loans are part of cash flow from financing activities.
The purpose of consolidated financial statement?
To understand the position of the group as a whole and also the inter flow of funds between parent and subsidiary companies.
What financial statement has accounting estimates?
All of them. Any estimate or accrual of expenses will affect the Income Statment and the Balance Sheet and therefore the Cash Flow.
It means that 60% of sales and purchases are done on cash basis while 40% of purchases and sales are done on credit basis.
What is the range of acceptable expense ratio when analyzing financials for a public golf course?
In the appraisals I've done, I've seen them in the vicinity of 75%.
Can deferred tax asset offset against deferred tax liability?
Yes, but only if the entity has the legal right to settle on a net basis and they are levied by the same taxing authority on the same entity or different entities that intend to realise the asset and settle the liability at the same time.
Weighted-average contribution margin ratio?
(CMratio)(SalesMix%)+(CMratio)(SalesMix%)+(CMratio)(SalesMix%)
Division A Division B Division C
For however many divisions there are.
What is Difference between cash receipts and cash payments?
the second word. here we differ these term by debit and credit when cash receipt then amount field is +ve as on debit and in cash payment it will be -ve as on credit and reverse for opposite .
