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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 cash a source or use of funds?
Note: in the 'Funds flow statement', working capital is used as a measure of funds, which is a broader definition of funds than cash. For example, working capital increases when inventory increases, but cash would remain unchanged.
How do you figure dividends from consolidated balance sheet?
However, it could be the case that the dividend has been declared, but not yet been paid. In that situation the balance sheet may include a liability 'dividends payable'. However, when you see such a liability, you can't tell whether or not any dividends are already paid before the end of period.
The statement that shows dividends is the statement of retained earnings (sometimes this statement comes with a different name, for example 'movements in equity'). The statement of retained earnings will show the beginning of year retained earnings, plus net income minus dividends, which equals end of year retained earnings.
What is the difference between miscellaneous expense and other expenses?
Miscellaneous expenses means small sundry expenses of business while other expenses means expenses which are not directly related to the primary operations of business.
What is the most important information contained in a financial statement?
The balance sheet shows the financial position at a point in time, showing the assets (debit) and the funding of the assets (credit).
The income statementThe income statement shows revenues and expenses over some period of time (usually a quarter or year). It shows how profitable the company is.
The cash flow statementThe cash flow statement shows the change in cash over the period. It shows the change in cash for three activities: operating, investing and financing activities. The cash flow statement is used to assess cash management.
For a more thorough answer on the question, please refer to the link provided.
'Total' has the highest score for the abbreviations that 'TTL' could mean (see link). Since you are probably dealing with accountants, it could also mean 'Time To Laugh'. ;)
Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.
What is difference between a conventional statement of cash flows and free cash flows?
Free cash flow is the sum of operating cash flow and investing cash flow. This is generally positive for a 'cash cow' (operating cash flows exceeding the investments), and negative for a growth firm (investments exceeding the cash generated by operations).
Campare between incom statement and cash flow statement?
Income statement and cash flow statement is different in this way that in income statement all incomes and expenses are shown within one fiscal year whether actual cash is paid or not while in cash flow statement only those transactions are listed due to which cash inflows or outflows from business.
How are liabilties unearned revenue?
Because it is revenue received but services or goods have not been provided to the customer yet.
What is the journal entry for extraordinary loss?
If extraordinary loss is on a/c of furniture & fixtures, then instead of crediting purchases, furniture & fixtures should be credited.
Are raw materials on the balance sheet?
yes, it is part of your assets. Balance sheet carries assets on the left side and liabilities and owners equity on the right side.
Which item does not include in trial balance?
Type your answer here... CLOSING STOCK DOES NOT INCLUDES IN TRAIL BALANCE
Does bills payable go on the income statement?
Why do companies show a net loss on their balance sheet?
When the balance sheet is made before profit appropriation, net income will be included as a item on the balance sheet in the equity section. In case net income is a loss, this amount will be negative. This is the situation that the question refers to (a loss is shown on the balance sheet).
After profit appropriationWhen the balance sheet is made after profit appropriation, net income is not shown as a separate item on the balance sheet under equity. Depending whether or not a dividend is paid, net income will show up as a dividend payable, or will be added to a reserve (for example, retained earnings). In case of a loss, it will be subtracted from a reserve.
How would fees receivable appear on the balance sheet?
Fees receivable would appear on the balance sheet as an asset.
Why prepaid expense is an asset?
Prepaid expenses are an asset because you (as the company) is owed something. When you are owed something by another then you list it as an asset until it's paid.
Investopedia also explains it similar to this:
While prepaid expenses are initially recorded as assets, their value is expensed over time as the benefit is received onto the income statement, because unlike conventional expenses, the business will receive something of value in the near future.
What occurs when expenses exceed revenues for a given accounting period?
Retained earnings are decreased.
This is when a country has more emigrants than immigrants
