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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
It is cash inflow and it will be shown under cash flow from operative activities as an increase in cash flow.
What is the difference between operating expenses and non-operating expenses?
An interview with a company's operations managers and a review of its commercial ambitions often give investors a clear idea of the firm's operating activities.
What are the accounting journal entries to record income?
If receiving cash from a good or service, the journal entry will be something like the following.
Cash (debit)
Revenue or Income (credit)
If you supply a good or service and the customers is going to pay at a later date, less than a year the journal entry will be similar to the following.
Account Receivable (debit)
Revenue or Income (credit)
Increase in accounts payable Statement of Cash Flows?
Increase in accounts payable means increase in cash as if cash was paid there was no increase in accounts payable but as no payment done it saves the cash and causes the increase in actual cash.
Income Summary
Three key financial statements that corporations are required to prepare?
Statement of financial position ( Balance sheet) , Statement of Comprehensive Income ( Profit and Loss Account or Income and Expenditure account), Cash flow statement.
What is undiscounted cash flows?
Undiscounted cash flows is a term commonly used in real estate sector. This does not take into consideration the value of time and in the future the value of a tangible asset will depreciate.
1. Basic Accounting Equation:
Assets = Liabilities + Owners Equity
500000 = Liabilities + 400000
Liabilities = 500000 - 400000
Liabilities = 100000What is the current portion of long-term debt classified with?
Current portion of long term loan is classified as current liability and shown under current liability section of balance sheet.
Is sales revenue closed with debit or credit?
In Bookkeeping always remember this Cash is always a Debit to the bank so the sale has to be a credit
distributions to owners
Is Cash from issuance of long term debt finance or investment?
Cash received from long term debt is a financing activity from company point of view while investment from investor point of view, same as while company purchase shares of other company it is investing activity from company point of view while financing activity from other company's point of view.
What is the difference between cash-based and accrual-based accounting?
under cash base system of accounting/book keeping transaction is recorded in the books of accounts when actually cash received or paid relevant to the transaction, whereas, in accrual Base system of accounting there is not any compulsion to actually receive or pay cash before recording the transaction in the books of accounts but only evidence of an event is needed to record it!
What is similar with asset and an expense?
There is no similarity between the assets and expense only prepaid/expired expenses is consider our assets.
Which one of the steps below is not aided by the preparation of the work sheet?
posting to the general ledger
In order for you to fully understand the answer, I thought I'd give a little background info on hownon-profit
accounting works:
In lieu of using the expression "retained earnings" (likefor-profit
organizations do),non-profits
use the expression "net assets," which shouldshow-up
in the Equity section of your balance sheet.
Net Assets are typically divided up into 3
categories:
- Temporarily Restricted
- Permanently Restricted and
- Unrestricted
would consider Retained Earnings.
By default, donations you receive will be considered unrestricted. So, to designate income you've received as either Temporarily or Permanently Restricted on the balance sheet, you must do a separate journal entry, essentially taking dollars out of Unrestricted designation and moving them into one of the two restricted categories. Since you've mentioned Temporarily Restricted, I'll use that in my example:
Debit: Unrestricted $100,000
Credit: Temp Restricted $100,000
You'll notice the change this causes on your Total Net Assets (Temp Rest + Perm Rest + Unrestricted = Total Net Assets) is $0, because you've simply moved dollars out of unrestricted and into a restricted designation.
Here's your answer:
As you spend down the restricted funds or (as your question seems to indicate) the donor unrestricted the funds they have donated, you would simply do the reverse of the above entry for the amount that you have spent or, in this case, what's left in temp restricted that the donor is nowunrestricting.
FYI, you should have a spreadsheet or something that ties to the amounts of your restricted funds.
It's a pain in the butt, I know, but it's hownon-profits
do things.
How is revenue in percentage of completion method computed?
Revenue is calculated as a percent of the total contract revenue according to the percent of completion. The percent of completion as calculated as the incurred costs up to the end of the reporting period to the total estimated cost for the contract. Simply it is :
Incurred costs up to date
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Total Estimated cost
