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
Is balance of provision for depreciation account is shown on the trial balance as debit?
no, provision of depreciation is
credit in nature. And thus it should be shown at the credit side at trial balance.
Will a net income of 95000 increase or decrease retained earnings?
Since increases in retained earnings mostly come from income accumulation, a net income of $95,000 will increase retained earnings.
Where does electricity go on the balance sheet?
Electricity is not part of balance sheet rather it is an expense and it is shown in income statement of business as expense.
SmartShop's profits have been growing at 5% per year. This year their profits were approximately $500,000. What were their profits last year?
it is a contra asset (negative) hence that's why it is shown as decreasing amt on the balance sheet. In other words, the contra account of any given account is of the same type. So, the contra of a fixed-asset account is also a fixed asset account but with the opposite normal balance. That's why depreciation is in the asset section.
what is the comparison between liquidity & yield analysis ??????
What is the purpose of a projected income statement?
Purpose of projected income statement to foresee the future of company based on certain assumptions during the planning stage.
How do you calculate accruals and non-cash transactions in preparing statement of cash flows?
non cash transaction are adjusted while preparing for cash flow using indirect method.
When do you debit the deferred tax asset?
When there is a difference between the carrying amounts and tax bases of:
1. Assets
2. Liabilities
3. Expenses
which leads to a reduction in your future tax liability.
What are the Cash flows associated with a bond?
The cash flows associated with a bond primarily consist of periodic interest payments, known as coupon payments, made to bondholders at specified intervals until maturity. Additionally, at maturity, the bondholder receives the principal amount, or face value, of the bond. These cash flows can vary based on the bond's terms, such as fixed or variable interest rates and whether the bond is callable or convertible. Overall, the total cash flow includes both the total interest paid over the bond's life and the repayment of the principal.
Does a dividend payment increase cash flow?
If we pay Dividend the cash flow will decrease as money will go out
What effect does the purchase of treasury stock have on net income?
Purchase of treasury stock has no effect on the net income of a business. The purchase may affect cash flow of the business. No profit or loss is claimed when shares are re-issued at above or below cost.
What does the acid test ratio not include cash or accounts receivable or supplies or inventory?
inventory
Professional skepticism
no
How amortization treated in the cash flow statement?
Amortization is added back like depreciation in net income while making cash flow statement from indirect method.
it is a formated message used by bank in the SWIFT system,
applied to documentary credits practising.
This message is meant for refusal of docts presented by beneficiaries in applying a documentary credit opened in their favour.
Message must state date of receipt of docts, amount and currency, and discrepancies found by the negotiating bank.
Journal entry of credit sale with vat?
simple
Party A/c Dr. (inclusive of vat)
sale A/c Cr. (exclusive of vat)
Vat output Cr.
