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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
Purchase equipment for 125000 for cash where does this go on a cash flow statement?
it will shown under cash flow from financing activities as cash outflow.
check your answer
What is the difference between negative price variance and volume variance?
Negative price variance is when the cost is less than budgeted.
Volume variance is a variance in the volume produce.
How do you figure cash paid for goods sold on a cash flow statement?
it is shown with changes in accounts payable amount if there is change in accounts payable it will shown in cash flow statement.
What do you mean by material facts in accounting?
material facts are documents pertaining to the historical events of the facts being justified
If stock means investment in stock of other company then yes it is fianancial asset for business.
Where is prepare statement of affairs?
Chicago fun enterprise had just completed operations for the year ended 31st December 2008. however, the owner did not keep proper accounting records. thus, difficulties arose upon the preparation of the final accounts.
the owner approaches you to assist her in preparing the financial statements for the year ended 31st December 2008. the following information is made available:
cash sales 172,125
cash purchases 18,000
cash paid to trade 180,000
expenses paid during the year:
salaries 27,000
insurance 4,800
rent 11,600
general expenses 6,200
discount received 1,200
cash from credit customers 151,275
cash purchase of equipment on 28 December 2008 36,000
discount allowed 900
additional information:
1. the assets and liabilities of Chicago fun enterprise:
1/1/2008 31/12/2008
equipment at net book value 48,000 75,600
cash 78,360 ?
inventories 15,000 21,600
trade debtors 4,500 8,100
trade creditors 10,800 15,300
accrued general expenses 1,800 15,300
prepaid salaries 2,500 -
accrued salaries - 2,000
required:
prepair:
a) the statement ao affairs 1 January 2008.
b) the cash account for the year 31 December 2008
c) the income statement for the year ended 31st December 2008
d) the balance sheet as at 31st December 2008
What does a company's solvency mean?
Solvency refers to a company's ability to meet its long-term obligations through its operations. It is often confused with liquidity, which refers to a firm's ability to meet it's financial obligations with cash and short-term assets it currently holds. A company may be illiquid but solvent; meaning that they are starved of cash (and no one will give them cash), but have long-term assets that are valuable enough to meet obligations in the long-term.
Is The capital account is the owners liability account?
yes it is because it is used to summarize the owner's equity.
Explain the difference between capital and revenue items of expenditure and income?
Capital expenditure are those the benefits of which will be taken for more than one fiscal year while for revenue expenditure benefits are only for one fiscal year.
How are investments treated in the balance sheet?
It's treated as part of the non-current asset. Because future economic benefits are expected to flow to the related entities, therefore it's an asset.
Profit is the only business of business?
Worthwhile actions/efforts + money + time = profit or gain (maybe emotionally, physically, mentally or financially gainful)
What if you put a wrong IFSC code?
It should get rejected and should be credited back to the sender's account
In which financial statement can I find if a firm is able to meet all it's short-term obligations?
The Balance Sheet will show the Short-term Assets and the Short-term Liabilities.
