Financial Statements

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

Income statement shows the income or expenses related to one fiscal year while cash flow statement shows the cash inflows and outflows from different areas of business.

the answer is D

Drawings A/c (debit)

TO

Asset A/c (credit)

Long-term SolvencyDebt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues Long-term Solvency Debt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues

6 is 30 divided by 5, so we can simplify 6 over 30 into 1 over 5.

Now what is 1 / 5?

Let's start by dividing 10 by 5. 10 / 5 = 2.

Because 10 is 10 times the value of 1, we divide 2 by 10. We get 0.2 from this question.

Therefore, 6 over 30 in decimal form is 0.2

Advantages

· They give the owner of the business an idea of whether they are making even or not. This can give a vital indication to stop the business from going into liquidation.

· You can also use formulae which mean that you can when you enter new data the table automatically changes meaning that you don't need individually work each of the calculations.

· It gives you the ability to change the data into a table or graph which allows the manager to easily locate which problems there are in the business. For example, pie charts, bar charts and line charts. These will give the user a clearer idea of what the financial issues are and can be dealt with quicker.

Disadvantages

· The disadvantages of spreadsheets are that you would need to train your staff to use the excel program efficiently. Some aspects are difficult such as creating a formula; you would have to train your staff which would cost time and money.

Dr. Unrealized loss on investment in Company B (P&L)

Cr. Investment in Company B (B/S)

Spreadsheet

An equity roll forward allows an investor to maintain the investment position of a contract beyond its initial expiration. This occurs shortly after the initial contract ends.

because profit is earned on the capital invested which is not the company's money.

capital is also like a liability and the profit should actually be given to the owner and the money is still there with the company so it is again a liab. for the company to pay the profit which is a return on the capital invested by the owner.

net operating income

A short term investment isn't always placed in a cash flow statement. When you are looking at a problem for a cash flow statement, and the additional information section says something about selling a short term investment, then the cash received from the investment is placed in the operating activities section. But if you are just looking at the balance sheet, see a decrease in the short term investments account, but no additional information is given about STI's, then you don't place the decrease anywhere. It also depends on if you are doing an indirect cash flow statement or a direct cash flow statement.

The purpose of Statements of Financial Accounting Concepts is to :

A establish GAAP.

Sophia Rodriguiz

Capital income is that income which is recevied or generated from sale of capital assets like shares or gold etc.

Revenue income is that income which is generated from basic business operating activities.

Assets= Capital+Liabilities So Assets=? Capital=100000 Liabilities=20000 Then Assets=100000-20000= 80000/-

yes, all accounts must be closed at the end of the period on the income statement

Bharat goyanka

sec

It is not the SEC. It is the FASB (Financial Accounting Standards Board)

You cannot buy a house unless you have financial solvency.

Operating Profit is earnings BEFORE interest and taxes are deducted but AFTER overheads and other indirect costs are deducted from your Gross Profit. Once you have this Pretax Profit you deduct from your Operating profit any one off items and interest payable to arrive at Net Profit. It is then at this stage that tax is calculated and deducted from the Net Profit to arrive at Retained Earnings procedure - dividends

So; Sales/Turnover - COGS/COS = GP - Expenses (but not 1 off/interest payments) = OP - 1 off items and interest = NP

cost accounting plays very important role in manufacturing organisation.unless cost accounting system one can't get the cost of the product appropriately.Many organisations fix their selling price based on the cost information.Not only in ascertaining cost of the product it can be used as measurement for their performance

Measure of profitability in relation to sales revenue, this ratio determines the net income earned on the sales revenue generated. Formula: Net income x 100 ÷ Sales revenue.