Financial Statements

You can do this by creating an income statement, where you minus the costs of good from sales and then also minus expenses from this number, this profit is then added to your retained earnings number on the balance sheet.

Yes, the transaction of returning defective supplies and receiving a cash refund would typically be recorded in the Cash Receipts Journal. The entry would involve debiting the accounts payable or purchases returns account for the amount of the defective supplies and crediting the cash account for the amount of the refund received.

The salary expense - no

But the control account that would normally be a liability until the employees are paid could become an asset is an employee was over paid and due to pay the company back.

The net book value of a depreciable asset is calculated by deducting the accumulated depreciation from the original cost of the asset. Accumulated depreciation is the total depreciation expense recorded over the life of the asset. This calculation allows for the determination of the asset's value at a specific point in time.

Assuming that the interest is charged on the amount owed by Geeta for purchasing the goods, the journal entry would be:

Debit: Accounts Receivable - Geeta (Rs. 40000) Credit: Sales Revenue (Rs. 40000) Credit: Interest Income (amount of interest charged)

It depends. What is the shareholder getting in return? Is payment expected? Is stock being issue? The specific inventory asset probably doesn't need to be identified separately as shareholder inventory.

If there is no stock or repayment expected then it should probably go to the Equity Account "Paid in Capital". But, this is a good question to ask your CPA.

The gross profit percentage is calculated by finding the difference between the selling price and the cost price, dividing it by the cost price, and then multiplying by 100%. In this case, the gross profit is 2.20 - 1.65 = 0.55. Dividing this by the cost price of 1.65 gives 0.3333. Multiplying by 100% gives a gross profit percentage of 33.33%.

Cash Flow 101 is a board game created by Robert Kiyosaki, author of the book "Rich Dad Poor Dad." The game is designed to teach people about the importance of financial literacy and how to achieve financial independence. Players learn about managing their assets and liabilities, creating passive income, and developing a mindset for financial success. The game aims to educate and inspire individuals to make better financial decisions in their real life.

Her net worth would be the difference between her total assets and total indebtedness, which is $5123.44 - $1258.04 = $3865.40.

The analysis that uses the percent of fixed assets to total assets is called the fixed asset turnover ratio. It helps measure a company's ability to generate revenue from its fixed assets, such as property, plant, and equipment. A higher ratio indicates better utilization of fixed assets, while a lower ratio suggests inefficiency in utilizing these assets.

Depreciation of plant and equipment is considered an expense because it represents the allocation of the cost of these assets over their useful lives. As assets are used in the production of goods or services, their value decreases over time due to wear and tear, obsolescence, or usage. Recognizing depreciation as an expense in the income statement helps to reflect the decrease in the value of these assets and ensures a more accurate representation of the company's profitability.

When fixed assets are received as a gift, the journal entry would typically be:

Debit - Fixed Asset (at fair value) Credit - Donation Revenue (at fair value)

This recognizes the receipt of the fixed asset at its fair value and records the donation revenue for the fair value of the gift.

When bonds are sold for more than face value, the carrying value is equal to the face value plus any premium. The premium is the excess amount paid by the investors over the face value of the bond and is amortized over the life of the bond.

A strong cost to income ratio is a low ratio, typically below 50%. This indicates that a company's operating costs are relatively low compared to its income, indicating efficient operations and good financial management. A low ratio suggests that a company is able to generate significant profits while keeping costs under control, which is favorable for investors and stakeholders.

A heavy use of long-term debt can be beneficial to a firm in certain cases. It enables a company to leverage their capital structure, allowing them to expand their operations or invest in growth opportunities without diluting ownership. Additionally, the interest payments associated with long-term debt are tax-deductible, which can have a positive impact on the firm's tax obligations. However, excessive debt can also pose risks if the company faces financial difficulties or is unable to manage their debt obligations effectively.

Capital receipts are funds that a company or government entity receives from the sale of assets, issuance of debt, or other capital transactions. They are typically used to finance long-term investments or repay outstanding debt. Examples of capital receipts include proceeds from selling stocks or bonds, loans received, and funds obtained from asset sales.

No, wages are typically considered a variable cost because they fluctuate based on factors such as the number of hours worked and the rate of pay. Fixed costs, on the other hand, do not change with the level of production or sales.

happened to the ship and its crew. It serves as a cautionary tale to foreshadow the danger and brutality of the whale hunting industry.

Yes, as the expense and the corresponding liability accumulate over the period, an adjusting entry is necessary to increase the expense (with a debit) and increase the corresponding liability (with a credit).

there is a budget surplus

Total variable cost as a percentage of sales revenue can vary depending on the industry and specific business model. However, a generally accepted guideline is that variable costs should ideally be kept below 70-80% of sales revenue. This ensures that there is enough margin left for covering fixed costs and generating a profit.

No, retained profit and net profit are not the same. Net profit is the total revenue earned by a company after deducting all expenses, including taxes, overheads, and costs of goods sold. Retained profit, on the other hand, is a portion of net profit that is kept by the company for reinvestment in the business, rather than being distributed to shareholders as dividends.

Certified cost or pricing data subsequently found to be inaccurate, incomplete, or noncurrent is known as defective pricing. It refers to a situation where the data provided during the pricing process was misleading or incorrect. Defective pricing can lead to financial penalties and potential legal consequences for the party responsible for providing the inaccurate information.

No, sales of goods is known as revenue because goods are maintain for the purpose of sales that's why it is called revenue while assets are maintained to use for the working of operation of business so if assets are sold then amount received from it is not called as revenue.

Examples of items that can cause deferred tax assets include net operating loss carryforwards, tax credits, and deductible temporary differences such as depreciation or bad debt expense. Examples of items that can cause deferred tax liabilities include taxable temporary differences such as accelerated depreciation or prepaid revenues. Additionally, changes in tax rates can also give rise to deferred tax liabilities or assets.