Financial Statements

revalutation account is opened to record the revaluation of assets and liabilities.the profit or loss arising because of revaluation is transfered to old partners capital account in their old profit sharing ratio.

Companies from time to time check the values of assets and liabilities for there book values and if there is some changes in book values of assets and liabilities that revaluations are made through revaluation account which are later charge to profit and loss account or transferred to reserve account.

The creditors' payment period is an activity ratio. It measures the average amount of days the business takes to pay its creditors i.e. suppliers. The more days available to pay the better.

Cost of Goods sold is made up of The purchase price of the items ,cost of brinnging goods to pint of sale(carriage inwards) and value ofgoods that might be in stock at begging of period in question less the valueof goods that stillremain as carrying invetontory at end of period in question.

Contribution margin tells the management for important decision that how much a single unit contributing towards recovery of fixed cost.
Activity based costing allocates the overhead costs to activities based on number of activities instead of predetermined rate.

Net cash provided by operating activities can be find out by adjusting the net income amount from income statement for non-cash items.

name the organization that governs the majority of the guidelines that the CPA will use to prepare the financial stetments

depreciation is not part of cash flow statement and in indirect method for cash flow it will be added back to cash flow from operating activities.

staff

Debit prepaid rent and credit cash.

No, Liabilities are not included in the total OE. Remember the account equation...

Assets = Liabilities + Owners Equity

If you have the total of your Assets and Liabilities, to find your OE then the equation would be written as this..

Assets - Liabilities = OE

No, These two are different. Journal vochar is document through which journal Entries are made in books of accounts

How does GAAP affect financial reporting?

Liability

Revaluation of inventory has no net effect on the cashflow statement as there has been no movement in cash.

If the value of inventory is increased, the debit entry to inventory revaluation is negated by the credit entry to the revaluation reserve / shareholders' funds.

If the value of inventory is decreased (more common), the credit entry to inventory writedown is negated by the debit entry as an expense or cost of sales item through the "statement of financial position" to retained earnings / shareholders' funds.

Treatment and disclosure of course would vary depending on the materiality, timing, accounting standards applicable to the jurisdiction and legislative / regulatory requirements with which the entity is obliged to comply.

Its meeting half way

Yes.

If this company gives all its profits to other organizations such as charities.

I believe the answer is as follows:

If payment not made : No action

If payment made : Dr Purchases Cr Bank

Can someone verify this? Thanks!

Interest on Loan

Miscellaneous expenses are part of income statement and not part of balance sheet and not shown under balance sheet.

true

Downtown Development Authority

NO

Stock market

Does not matter, many times companies don't complete their revenue cycles until the after all expenses are recongized or accrued.

surely it is neither, it is merely just a reduction in marketable value and no money is paid or received with depreciation. it does not affect cash but is classed as an expense.