Financial Statements

By producing the best quality of goods

Cash flow is a projection of the cash a business will have on hand over the course of time, balanced with the expenses a business will have over that time. It matters because while income may be cyclical (you receive quarterly payments on a contract or a large percentage of your sales come at Christmas) expenses are often fixed each month. Doing a cash flow projection helps your business to budget so that you will always have enough cash on hand to meet your expenses as they come due.

Prepaid expenses are those expenses which are paid already but actual expense is not incurred and when actual expense incurred adjusting entry required to adjust prepaids as in acrual accounting income and expense only recorded when they are actually occured when not when the cash are paid so cash payment is not important to be recognise for transaction occuring.

Its about the limitation of fund flow statemants .....

A Statement of Work (SOW) or Performance Work Statement (PWS) is a formal document that outlines the specific goals, deliverables, tasks, and timelines for a project or contract. It details the scope of work to be performed, including performance standards and requirements, to ensure all parties have a clear understanding of expectations. The SOW/PWS serves as a foundation for project planning and execution, providing a basis for measurement and evaluation of performance.

Finance lease is shown as an asset in asset side of balance sheet as well as shown as a liability under long term liability section of balance sheet.

[Debit] Purchases xxxx

[Credit] Cash / bank xxxx

[Credit] Accounts payable xxxx (if purchased on credit)

Payment of money.

While in the process of revaluation of assets and liabilities, if the value of some assets increase more than the decrease in the value of some fixed assets then the difference of this increase and decrease if positive is called surplus on revaluation of fixed assets.

Bank overdraft is shown in balance sheet same as bank account or any other cash account, it's a short term bank credit.

Capital is that amount which is invested by owner of business in business and it's the liability for business to return back to it's owner that's why it is liability.

Liabilities are those amounts which payable by the company to third parties or to it's onwers.

Prepaid expenses are of asset in nature because these are payments which have made already but actual expense is not yet incurred so it is shown in current assets under balance sheet until actual expenses incurred.

Hmmm. Excellent Question. It Seams like technology should be improving the way that we maintain any record. truth be told now financial institutions have to maintain the "digital" copy and a hard copy. while you think your information is secure, anyone with a d- in computer science can Google how to "hack" a network and recover any information that they deem necessary ...or helpful to them. at least with only paper copy's you know that you could truly safeguard, or at the very least destroy (for sure) any evidence. If you delete anything stored via technology on PCs it can easily be re-accessed in a matter of seconds. The end result of technology is people think they are much more secure and can access their information faster and easier... news flash, If you can get to it easier so can a thief. This leads people to believe that they are safe and thus they become much more careless than before. Plus with the insecurity of technology and the still much needed maintenance of the hard copies it is costing the tech costs plus the cost of the old ways. technology ... good for quick easy access... to ALL, even the ones you don't want to have it.

darklove_420@charter.net Rick

asset side

Is it right that I debit the refund to [Sales returns] and credit it to [Cash at bank]?

But the answer given by my teacher is that the refund is debited to [Trade receivables] and credited to [Cash at bank].

Incremental cash flow refers to the additional cash inflows and outflows that a company expects to generate from a specific project or investment, compared to not undertaking that project. It is crucial for assessing the financial viability of a decision, as it focuses solely on the changes in cash flow that result directly from the project. This measure excludes sunk costs and considers only future cash flows, making it an essential component in capital budgeting and investment analysis.

Also look up leverage. I'll explain: Suppose Sharp Elbows Corporation owns Funky Cribs apartment complex that cost $5 million, and they owe $4 million to First National Bank of Greed, and they pay FNBG 6% annual interest on the loan.

Sharp Elbows Corp. has $1 million in equity.

Suppose that Sharp Elbows collects a Million Dollars in Rent from Funky Cribs.

Half of that rent goes for the expense of operating the apartments, paying for repairs, lawn mowing, snow removal, and security to evict the meth addicts and crack heads.

Sharp Elbows Gross Profit is $500,000 out of which they pay FNBG $300,000 in interest. Sharp Elbows Corp. owners profit is $200,000 which is a 20% return on its equity of one million.

If Sharp had not used leverage, but had put up the full $5 million to buy Funky Cribs they would have not paid interest, kept half a mill, but they would only have made 10% on their money.

If Sharp has $5 million to invest this way, they can make twice as much by leveraging five complexes like Funky Cribs, than if they simply paid cash for just the one funky apartment complex.

A positive theory seeks to understand how something is or how it operates, without making value judgments or prescribing how it should be. It aims to describe and explain phenomena based on empirical evidence and facts, rather than opinions or beliefs.

[Debit] Loss on sale of equipment xxxx

[Credit] Asset account xxxx

Net cash flow means net of cash inflow and outflows while operating cash flows means cash flows generated by operating activities of business.

debit redemption of debentures account
credit cash / bank

jolting statement means

One can find an example of a bank reconciliation from several online sites. Some of them are AccountingCoach, AccountingExplained, Bookkeepers Ireland and many more.

Many major banks now offer online statements for savings accounts. A few examples of companies that offer this service are Barclays, Halifax, Lloyds TSB and HSBC.