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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
What is financial performance analysis?
Financial performance analysis is the method of correctly establishing the relationship between the profit and loss account and the things on the balance sheet. The information is used to identify the financial weaknesses and strengths of a firm.
Service revenue on a balance sheet?
I'm not sure I fully understand your question. Revenue would never be on a balance sheet, it is an income statement account.
If a company's cash flow statement is negative what does it mean?
When there is a negative figure on a cash flow forecast or statement it may mean a variety of things are happening in the business:
It may be a seasonal business and may not have had sales (cash inflow) that month so the figure at the end of the month is negative because there have only been bills to pay (cash outflows) with no money coming in. A seasonal business may be an ice cream van (poor sales in cold months) or a fireworks shop (only open Oct / Nov / Dec).
It may mean that the business has unmanageable bills to pay (cash outflow) and has perhaps over estimated what the sales would be (cash inflow) and so has a negative balance at the end of the month.
What is the first version of tally?
Tally 4.5
Tally was started with is first version of Tally 4.5, which was a DOS based program. This program was very light weight and very fast in operation.
Tally 5.4
The next version was 5.4 which was graphic interface version. It became popular in the masses. Its pirated copy made it most popular accounting software.
Tally 6.3
Next version was tally 6.3 which was truly windows based version which could support fast printing and with VAT implemented. Tally 6.3 came with water tight security in terms of piracy. With its dongle it was almost impossible to crack. Although crack of software were available but Tally's policy of frequent upgrades and newer releases does the trick.
Tally 7.2
Next version of Tally was Tally 7.2. It was also fast version with lots fo new feature like statutory compliant versions. Different VAT rules for different states was achieved with this version.
Tally 8.1
Tally 8.1 was developed with new data structure of Tally. A module of POS and Payroll was added to it. It could not live up to the expectations with the people and marred by bugs. Company rectified many but the version could not become popular and company has to abort it before time and launch new version.
Tally 9
This is the latest version of Tally which has maximum features. All other versions have been declared end of life period by Tally company. Tally 9 has advance features like Excise for Dealers, Payroll, FBT, TDS, e-TDS filing facility etc along wit its regular features related to accounting and inventory management.
More information on Tally can be found at www.tallysolutions.com Tally's site.
For help articles and tutorials on Tally you can visit www.apnitally.com.
What are the qualities that you possess as a science student?
There are a number of qualities that you should possess as a science student. Some of them include being observant, open-minded, patient and curiosity to discover more among others.
What is an example of an asset account?
The current asset refers to the assets that are expected to be converted into cash within a year from the balance sheet date. An example of an asset account is an account that includes bank deposits, cash, market securities, and the notes receivable.
Briefly explain the direct expenses?
Direct expenses increase or decrease based on the rate of production. For example raw material costs increase as more products are made.
What is the basic of accounting titles?
Basic accounting titles cover general accounts that all companies will have. For example all corporations will have retained earnings, dividends, and paid in capital accounts.
Rewarded behavior is likely to recur?
The law of effect principle, which states that rewarded behavior is likely to recur, was developed by Edward Thorndike. He suggested that responses followed by satisfaction were bound to happen again.
Your gross turnover is how much money you have made before you subtract or take out your expenses. Once the expenses are deducted, this will give you your income.
How do you calculate disposal of fixed assets?
[Debit] Accumulated depreciation
[Debit] Loss on disposal (if any)
[Credit] Asset
[Credit] Profit on disposal (if any)
What is the journal entry to record payment of accrued interest?
[Debit] Interest expense xxxx
[Credit] Interest payable xxxx
[Debit] Interest payable xxxx
[Credit] Cash / bank xxxx
Cash flows from operating activities include?
All those activities which are directly related to basic business revenue earning activities like sales, purchases etc.
What is the purpose of working capital?
Working capital is defined as "a measure of both a company's efficiency and its short-term financial health." It is a ratio calculated with this formula: current assets - current liabilities = working capital.
Is interest payable a credit or debit?
Interest payable is liability account and have a credit balance as a normal balance.
Is service revenue an asset or liability?
Services revenue is revenue same as product revenue and it is not an asset or liability of the business.
Definition and Explanation:
In almost all businesses, it is found necessary to keep small sums of ready money with the cashier or petty cashier for the purpose of meeting small expenses such as postage, telegrams, stationary and office sundries etc. The sum of money so kept in hand generally termed as petty cash and book in which the petty cash expenditures are recorded is termed as petty cash book.
In large business houses , the cashier has to handle every day a large number of receipts and payments and if in addition to this he is further saddled with petty cash payments, his position becomes embarrassing. Besides, it is most common to find with large commercial establishments that all receipts and payments are made through bank. Since expenses like postage, telegrams, traveling etc, cannot be made by means of cheques, the maintenance of a small cash balance to meet these petty payments becomes all the more necessary.
A petty cash book is generally maintained on a columnar basis - a separate column being allotted for each type of expenditure. The is only one money column on the debit side and all sum received from time to time by the petty cashier from the chief cashier are entered in it. The credit side consists of several analysis columns. Every payment made by the petty cashier is entered on this side twice - Firstly it is recorded in the total column and then to the appropriate column to which the expense is concerned. The total of the "total column" will naturally agree with the total of all subsidiary columns. The difference between the total of the debit items and that of the "total column" on the credit side at any time will represent the balance of the petty cash in hand and this should tally with the petty cashier's actual holding of cash.
The posting from the petty cash book to the respective accounts in the ledger are made directly in total at the end of every month or any other fixed period.
Where does depreciation expense go on the statement of cashflows?
Depreciation is not a cause of cash outflow as it is simply a treatment to show capital asset reduction and charge to specific fiscal year that;s why depreciation is not a part of cash flow statement and due to this reason under indirect cash flow statement, in operating activities cash flow it is added back to net income as well.
Which of the following is true concerning the preperation of financial statements?
The cost of goods sold is deducted from sales {confirmed page 525} B is the answer
What is contingent liability insurance?
Liability of individuals, corporations, or partnerships for accidents caused by people other than employees for whose acts or omissions the corporations or partnerships are responsible.
This particular situation may arise when an independent contractor is hired. The business can be held liable for negligent acts of the contractor to the extent that its representatives give directions or exercise control over the contractor's employees.
Does every adjusting entry have an effect on determining the amount of net income for a period?
Yes it will, because all adjusting entries affect at least one income statement account and one balance sheet account.
Example of physical resources?
GARAGE EQUIPEMENTHealth & safetyAdministration
Tools Fire extinguishers Job cards
Ramps Personal protection Air condition
Tyre bay equipment Heating
Extractors system IT
Laser wheel aligner
Diagnostic equipment
Benches
Air lines
Air compressor
Lifting and pressing equipment
Special tools
Wheel choc
Liquid dispenser
Floor cleaner
Auto data
Power pack and battery charger
Vehicles
