Financial Statements

you will never get this

what is sales and purchase cut off

A profit margin can be negative if the company had a negative net income. For eample if the company had $100,000 in net sales, but their net income was ($10,000) then (10,000)/100,000 = (10%) or negative 10%.

liability

If a customers account has a "credit" balance, this means the company owes that customer rather than the customer owing the company.

Customer accounts tend to have a debit balance, meaning the customer owes the company that amount. It is rare when a company owes a customer, if this does happen, the account becomes a liability instead of an asset because of the fact that now the company owes money rather than is "owed" money.

All companies owe someone somewhere, these are either in the manner of expenses or liabilities.

The question you are posing is too open. Exactly what "cash" did the company receive?

Cash received by a company from sales of goods, services rendered, etc are all recorded as revenue depending on the type of the company.

If the company owes a person money, that debt is recorded as either an expense payable or a liability payable, such as accounts payable.

The company has to record said income on their income statement and then reduce the income as needed for the expenses in reference.

Because unit costs are computed by departments or processes at fixed time intervals.

horizontal analysis

LIFO

Depreciation appears only in the operations section of an indirect-method cash flow statement or in a supporting schedule to the body of the statement of cash flows in a direct-method statement. Depreciation is one of the items that reconciles net income to net cash flow from operating activities. However, it does not appear directly on a direct-method cash flow statement because it does not directly affect cash

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Obviously, you must be speaking about a business rental expense..as that is the only type that may be deductible anyway. Most small business are on cash basis reporting, and it is ONLY expensable when you pay it, regardless of when incurred. Otherwise, it may be an accrued expense, subject ot certain payment and acrual accounting requirements, and taken according to those rules. It may even cause you to have a loss for the year, which would be a carryforward or back benefit.

The elements of financial statements are measured in dollar amounts.

The trial balance is the source document for the preparation of any financial statements.

A trial balance is a list of all the account codes with the current balances and the first step to prroduction of the financial statements is checking to see if it balances. If it doesn't then you're in serious trouble as there is a major flaw in your financial records.

When constructing the profit and loss account in the financial statements you simply group together the income and expense accounts from the trial balance into convenient groupings and the resulting total is the profit or loss of the business.

The balance sheet is contructed by simply taking all the balance sheet accounts from the financial statements, again grouping together into convenient groupings. The profit or loss calculated in the profit and loss earlier is the retained profit for the period that is entered at the bottom of the balance sheet to ensure it balances

This process is referred to as "posting". This is needed to keep complete and organized records of all transactions in the general ledger, as this is the source document used to create statements.

Income Statement is a financial statement which shows all the income and expenses of company, while cash statement shows the receipts and payments of company.

In cash based accounting system cash statement is also work as a income statement as everything is dealt on cash bases but in accrual accounting tracking of receipts and payments and income and expense is a separate tasks.

a credit

It's a foreign exchange gain or loss, so when you exchange currencies, you can either make a gain or a loss from it (profit or loss).

PP&E are considered the fixed asset accounts. Property, Plant and Equipment.

These include things that generally last for long periods of time. Land, Buildings, Vehicles, Machinery used in the business, etc.

A Trial Balance is only relevant if an organization uses double entry bookkeeping. If it does then every transaction is posted to more than one account so that the debits and credits are equal. For instance a Sales Transaction will be posted as a debit to the Customer's account and a credit to Accounts Receivable. This being the case when all the accounts are totalled the total debits should equal the total credits. Any discrepancy must be investigated as a minor discrepancy may be the result of major errors on both sides. Many years ago when the accounts were done manually a Bank's Branch staff were not allowed to leave until the accounts were balanced. In Government Accounting this is just as important as anywhere else.

Gross profit is profit before Selling, General and Administrative costs (SG&A), like depreciation and interest; it is the Sales less direct Cost of Goods (or services) Sold (COGS), Net profit after tax is after the deduction of either corporate tax (for a company) or income tax (for an individual).

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it states that all relevant and material events affecting the financial condition or position of a business and the results of its operations must be communicated to users of financial statements