Financial Statements

Zero

Lifo Fifo

Taxes are payable on income less expenses

How might changing one of the financial statements affect the other financial statements?

debit assets
credit cash / bank

ironically, someone who invests your money can be called a broker.

no

consignee a/c dr.

to sales

Net worth means the cost (amount paid at the purchase date plus any capitalized costs like major improvements) offset by the accumulated depreciation/amortization.

For example, you purchase a building for $1m and made a major improvements of 500k. The cost of the tangible asset is on the balance sheet for 1.5m. Then as time goes by you will depreciate the building based on its expected life. Let's say the building has a ten year life then you will depreciate 150k every year.

Two years from the purchase/improvement date, you have the cost of $1.5m and the accumulated depreciation of $300k. the net worth of the building is $1.2m

In order to answer this question, you would need to know the amounts that were originally provided in the account balance and the ones that were booked in the ledger.

when in real estate business when and agreement his signed what entry intialy passed

Yes

Debit Cash / bank / accounts receivable xxxx

Credit Sales revenue xxxx

Income Statement

Debit fixed assets
Credit donations / retained earnings

what is benefits of holding inventories

While the word 'unqualified' may seem to have a negative spin on it, it is actually the best type of audit report a company can receive.

Once an audit is complete, the audit partner will produce a report the the owners if the company giving his/her opinion on the accounts. An unqualified report will say that there are no material misstatements and the accounts seem to be true and fair.

If there are issues with the accounts that the auditor needs to bring to the attention if the company owners, he/she will produce a modified (qualified) audit report instead.

No

what liabilities division should contain

It is possible to write off a liability. When doing this, you need to write it off as 'other income'.

Select F2 to change the date.

Any amount which is returnable by the company to it's owners or outsiders on the event of dissolution of company that amount is called liability of company

Could mean a few things. Could mean you have sold something that the buyer never received and you were charged back for the money they payed you. It could also mean you cashed a check at your bank that was refused by the bank on which it was written and so your bank has charged you back with the money you received.

This is becoming a real problem for people involved in online auction selling as the charge-back is just applied on the say so of the buyer. Consequently, some people are receiving the goods then claiming not to have done so and getting a refund leaving them with the goods and the money. Even proof of delivery seems insufficient to reverse this decision and if someone says they didn't authorise the use of the credit card, the charge-back happens automatically. Seller beware as I speak from personal experience.

capital reserve is not a free reserve

Five (5) objectives of a credit policy are listed as follows:

* To ensure consistency in the processes and procedures used to manage all credit aspects of an organization

* To ensure that the expectations of the management of an organization and the credit department are aligned and met consistently

* To ensure that all customers are treated fairly when making credit decisions

* To provide for succession management and training if credit personnel leave the business

* To evaluate credit decision making and adjust as circumstances warrant

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