Financial Statements

A cash flow statement is a document that lists all the income and expenditures of a particular financial account. It can list written checks, deposited checks, and any kind of transaction.

A Requisition

Financial flexibility refers to a firm's ability to take advantage of unforseen opportunities or their ability to deal w/ unexpected events depending on the firm's financial policies and financial structure. For example, a firm w/ high debt obligations and weak solvency (abilty to pay obligationas as they come due) and liquidity (abilty to turn assets into cash quickly) is not very financially flexible.

As working capital the IDC should be included in Investment plus it is contracted during the construction then it should be condidered as an investment /asset subject to depreciation

Purchases a/c dr Accounts Payable cr

ALL EXPENSE ACCOUNTS ARE CLOSED OUT AND AMOUNT ID DEBITED OR CREDITED INTO CAPITAL ACCOUNT TO SETUP BOOKS FOR BEGINNING OF NEXT FISCAL YEAR.

Before you can enter a transcation for account, first sort the transcation into either debit or credit, remember this every transcation as an equal and opposite effect, this means that every transcation u will post into the nomial leger must have a corresponding leger taking into consideration the debit and the credit of the tanscation.Mostly debit side of the nomial leger are things received by the business while the credit side are things given out by the business.

if software is purchased and price is paid at once and used for many years then it is fixed asset but if you purchase a software and after that every year you need to renew the license of using that software then this lisence cost is current asset and price paid for purchasing software is fixed asset.

For Example:

software purchased for $1000 and lisence renew fee for every year is $100 then $1000 is fixed asset and $100 is current asset or revenue asset.

The radiation standards is very important to us in our daily lives!!!

The radiation standards is very important to us in our daily lives!!!

The radiation standards is very important to us in our daily lives!!!

The radiation standards is very important to us in our daily lives!!!

to earn more capital

Yes. Gross Profit is the earnings left over after the cost of obtaining or making the good has been subtracted from the selling price of the good. Operating expenses such as the heating and lighting in your office are subtracted from the Gross Profit to give you an "Operating Income/Loss" figure. Finally, things such as Interest revenue or Interest expense are added or deducted from Operating Income to give you a Net Income/Loss.

For example. I buy 6 widgets at a cost of $1.10 each from my supplier, and resell them for $3.50 each. My bank statement shows interest revenue of $2, and I have a telephone bill for $60.

-Income Statement-

Sales $21 .00 ($3.50 x 6 widgets sold)

Cost of Goods Sold 6.60 ($1.10 x 6 widgets sold)

----------

Gross Profit $14.40

Operating Expenses:

Telephone Bill 60.00

----------

Operating Loss $(45.60)

Non-Operating Expenses:

Interest Revenue 2.00

----------

Net Loss $(43.60)

======

Loss of Earnings is Coverage to reimberse for lost wages due to a covered peril. Such losses are commonly incurred after a covered injury.

Reliability

ASSETS Audit to address the various audit assertions including: existence, complteness, rights and obligations, valuation and disclosure. ASSERTION PROCEDURE General Obtain a schedule showing movements in assets for the yearCast the schedule, and agree total to the trial balance and the financial statements Agree figures to the asset register ExistencePhysically inspect the assets to ensure existence Rights and obligations/existence Inspect title deeds or deeds of transfers to ensure that the assets are in the name of the entity Inspect insurance contracts to ensure the assets are insured in the name of the entity Select a sample of asset additions from the ledger for assets and trace them to supplier invoices to confirm prices Rights and obligations, valuation, and authorisation Trace these assets to order, grn and the payment cheque to confirm receipt, and validity as well as value Enquire from management as to accounting for property plant and equipment Apply the accounting policy to assess if the assets are accounted for in terms of the entity policy # If policy is revalue assests ensure assets are carried at revalued cost less accumulated depreciation otherwise carry at cost less accumulated depreciation # Obtain schedules for deprciation calculation and cast and cross cast the file to ensure accuracy # Review the schedule to ensure that correct rates of depreciation have been applied per category as per accounting policy and recalculate depreciation expense.

'''''Limitations of financial ratio analysis'''''

# Many ratios are calculated on the basis of the balance-sheet figures. These figures are as on the balance-sheet date only and may not be indicative of the year-round position. # Comparing the ratios with past trends and with competitors may not give a correct picture as the figures may not be easily comparable due to the difference in accounting policies, accounting period etc. # It gives current and past trends, but not future trends. # Impact of inflation is not properly reflected, as many figures are taken at historical numbers, several years old. # There are differences in approach among financial analysts on how to treat certain items, how to interpret ratios etc. # The ratios are only as good or bad as the underlying information used to calculate them.

Although ratio analysis is very important tool to judge the company's performance , following are the limitations of it.

1. Ratios are tools of quantitativeanalysis, which ignore qualitative points of view.

2. Ratios are generally distorted by inflation.

3. Ratios give false result, if they are calculated from incorrect accounting data.

4. Ratios are calculated on the basis of past data. Therefore, they do not provide complete information for future forecasting.

5. Ratios may be misleading, if they are based on false or window-dressed accounting information

This is important as this is part of the ledger which shows what is owing or owed at any given point in time. For example Debtors; all receipts from Debtors are posted into the subsidiary ledger (individual debtor accounts). Therefore, this ledger would show what is truly outstanding at any given day hence the need for daily posts..

Consolidated income statement is that statement in which expenses and incomes of subsidiary as well as parents companies shown as a joint in one single income statement.

Normative theory is a type of political theory that seeks to determine what a society ought to be like, based on principles of justice, fairness, and equality. It is concerned with prescribing norms and values that should guide individual and collective behavior towards the common good. Normative theory often involves moral and ethical considerations in assessing the legitimacy and ethical implications of political decisions and practices.

Because somebody made an error, or there was some other kind of misunderstanding. It happens all the time.

Rent Dr Rent Accrued Cr (for the Dec month)