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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
Is store supplies expense a selling or general and administrative expense?
It is a selling expense to be accounted for on the Income Statement under Selling Expenses.
Is Beginning inventory in balance sheet?
Beginning inventory is a closing inventory for last period and that's why shown as a current assets in the assets side of balance sheet. If business has started first year of activities even than beginning inventory is an asset of company and shown under current assets of balance sheet.
Adjustments would be not necessary if financial statements were prepared to reflect income from?
Lifetime operations.
Where does loss on asset fall in the balance sheet or income statement?
Loss on Asset: It is shown under income statement as a expanse in the year of disposal of asset.
Where does accumulated depreciation go on a multiple step income statement?
accumulated depreciation is a part of financial statement while its counteract or effect is recorded into income statement as a Depreciation Expense.
Does interest payable go on a balance sheet?
Interest payable is the interest which is not yet paid and required payment to be made so it is the liability of the company and that's why it will show as a current liability under liability side of the balance sheet.
What is the difference between proforma financial statements and projected financial statements?
Pro forma financial statements are based off of historical statements and include a select few changes or exclusions "as a matter of form" (hence the name). For example, addition of debt or exclusion of extraordinary one-time expense. "Projected financial statements" (aka projections) can be made from scratch and are based off of many different assumptions, few or none of which are based on actual performance. Hope this helps!
Source: my recent completion of a formal commercial bank credit training program.
When is sales revenues usually considered earned?
Sales revenue are usually considered earned when "goods are transfered from the seller to the buyer".
a customer may return goods to the business. these goods are known as sales return or return inward.
Income Statement I/S focuses on how the company recognized income, according to the rules of income recognition under a particular system (GAAP, Tax, or Internation Financial Reporting standards). This statement separates the income according to operations, financing and extraordinary items. So, for example, one can see gross and net profit from operations and then financing items like depreciation, interest expenses, and taxes in second part.
Cash flow is the use and sources of cash funds during the operating period... and remember that Cash is king, since a company that is collecting more cash than spending can stay in business. One showing I/S earnings but not collecting cash is doomed to fail.
Where does 'wages payable' go on the income statement?
Wages Payable goes into balance sheet under liability and wages expenses shows under income statement.
Wages Expenses
Wages Payable
Income Statement
Wages Expanses
Now in these entries wages payable remains still to be closed so it goes to balance sheet until payment.
When payment settled
Wages Payable
Cash/Bank/Goods etc
a powerful statement has to have creativity and a strong meaning behind it.
Are Marketable securities located on a balance sheet or income statement?
Marketable securities are located on the balance sheet.
the numbering and layout of a Chart of Accounts?
Where does capital expenditures fit in balance sheet?
Capital expenditure are those type of expenditure the benefits of which are taken in more then one years by the business entity. So according to this all fixed assets are capital expenditures and fixed assets are shown at asset side of balance sheet.
When is discount allowed to debtors?
- Discount allowed for the early settlement of accounts - This discount is allowed to your debtors or customers at the time of the settlement of their account. You may agree with your customers to allow a certain percentage of discount allowed e.g. 2½ % if they settle the full amount on an invoice within 30 days). This discount is recorded when a debtor or customer settles the full invoice within the specified time. This discount needs to be entered as an expense in a Discount Allowed account and will reduce the net profit and will have no effect on the gross profit.
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How is the net book value of a fixed asset is determined by?
Original cost less the accumulated depreciation
What are the effect when a bank reconciliation statement is not prepared?
what is impact for brs statement does not tally may i know about the answer
What is the difference between a balance sheet and a budget variance?
A budget is all expenses of the performances which has done by actual forecasting in front of the income and sources but balance sheet is a sheet that we appear what we have and both sides of balance should be equal and shows the situation of a company but budget shows the estimation of the costs!
