Financial Statements

Although this is choppy, here is a quick run down of somedisadvantages of an international harmonization of accounting: -Political reasons -Nationalism- will the public accept? The U.S. is still on the standard system for measurement, using this as an example, would a country like ours really want to stimulate this juxtaposition? -Dennis Beresford, former chairman of the FASB states that everyone who seriously considers global accounting harmonization as a potential method affirms that nationalism is one of the top constraints to becoming a reality. -Already a global capital system- those companies that see a benefit from using an international approach will do so and those companies that do not see benefits will not. Those that make the wrong decision will loose out on the opportunity. Although this is choppy, here is a quick run down of some disadvantages of an international harmonization of accounting: -Political reasons -Nationalism- will the public accept? The U.S. is still on the standard system for measurement, using this as an example, would a country like ours really want to stimulate this juxtaposition? -Dennis Beresford, former chairman of the FASB states that everyone who seriously considers global accounting harmonization as a potential method affirms that nationalism is one of the top constraints to becoming a reality. -Already a global capital system- those companies that see a benefit from using an international approach will do so and those companies that do not see benefits will not. Those that make the wrong decision will loose out on the opportunity.

Share Capital is the amount invested by the owners of business into the business.
Drawings is the amount withdrawn by the owners of business.

So it is not surprise to show the drawings from deduction from the share capital because net effect is the reduction of the share capital of the owners of the business.

Capital is the owner contribution towards business at the start of business as well as during the business as well.

Ideally, they are listed with the most liquid items first. If your balance sheet has only cash, inventory, and land for assets, they would be listed in that order. (Liquidity, if you are wondering, is basically how quickly it can be converted to another kind of asset.)

It really all depends on the financial statement. They are all rather similar but they are all different. I would suggest you going to see your adviser and have him or her walk through it for you.

Loss on sale of equipment is shown in income statement as other loss.

thank you for your question, let's first review the purpose of each statement and then try to tie them together through this review: 1) Balance Sheet Statement: takes a picture of assets, liabilities, and equity at a certain date in order to allow readers have an accurate understanding about the financial position of the company and where participants or owners stand. 2) Income Statement: Shows the performance of that company along the accounting period in terms of revenues and expenses. The outcome of this performance is shaped in either net income or net loss. This net income or loss is actually the extra money the company gained or lost through its operations which cannot be seen in the balance sheet unless income statement is prepared. So you will find Net income or loss from income statment exists in the equity section of the balance sheet. 3) Cash Flow Statement: The main purpose of the cash flow statement is to show the entrance and exit of cash, and whether the cash gained is a result of the company's operations activities, invisting or financing activities. A cash flow statement of a healthy company would show that the density of cash entrance comes from its operating activities. The net entrance or exist of cash should be equal to the difference between beginning and ending balance of cash that appears in the balance sheet statement. The interrelationships between the financial statement might have other dimensions. The dimention I mentioned is just what I found from my perspective.

Cost of goods sold is of expense nature and that's why not shown in balance sheet rather it is shown in income statement to match expenses against revenues.

Prefered Stock is one type of share capital issue to public with preferential rights available to them like they must get return on shares whether company earns profit or loss they are the people get their returns etc. So as it is a type of share capital so it also includes in share capital of company and shown in owner's equity part of liability side of balance sheet.

The sequence in which all three sections are provided downward is called "Statement method" of balance sheet.

Liquidity refers to the ability of a business to pay it's current liabilities from current assets - that is, whether it has enough assets to back the money that it must pay back within a year. It is usually measured using the current and acid test ratios.

A financial reporting system is a system that is connected to departments and allow managers to input numbers so that the finance department will have up to date information. These systems have alerts that let executive managers know when something is wrong in production.

In most condominium associations, unit owners are also known as association members.

You can find your answer in your governing documents, in the sections that address financial matters.


You can request specific access to the audited financial statement through your property manager or your board of directors, specifically the treasurer.


If you have a right, based on your governing documents, and the right is denied, you can demand access and engage an attorney, if necessary.


Part of a treasurer's job is to share financial information with unit owners on a regular basis in most condominium associations.

Assets

Prepaid expenses do not go on the income statement as they are classified as assets. They are amortized over the time period being paid for.

Example: If you prepaid $600 dollars for 6 months rent. Then $100 dollars would be expensed each month and the remaining amount is reported on the the balance sheet.

Revenue is not part of balance sheet rather it is part of income statement as it is the amount earned by selling goods or services.

Accounting information is presented to internal users in the form of management accounts, budgets, forecasts andÊfinancial statements. External users are communicated accounting information in the form of financial statements. These users are creditors, tax authorities, investors, etc..

balance sheet

Cash flow is money coming in and money going out. If you arent getting any cash to flow then you dont have a cash flow. Say you had a great job making a lot of money.... you had money coming in because you were working.... well your money was also going out because you were buying things you wanted. Then you lost your great job. Your cash flow stopped.... you now have to budget your money. You still have a cash flow as long as you are spending that money. Once you run out of money you no longer have a cash flow.

interest expense is deducted from EBITA (Earnings before interest and tax). This is in the income statement. Note that interest expense is NOT the monthly or yearly mortgage being paid, birt the fraction of it that is just interest.

prepaid insurance is shown under cash flow from operating activities as reduction of cash flow or cash outflow.

Income statement measures the amount of net profit or net loss related to specific fiscal year of business.