Financial Statements

These are two separate financial and business related terms. Depreciation regards the loss of value of product over time due to age, wear, and obsolescence. Amortization regards the payment schedule of those goods and services financed. Amortization and depreciation are related as financiers may calculate loss of value as part of the repayment. This is especially important when cars are leased, as the amortization amount takes into consideration loss of value.

consulting revenue will go to income statement in case if the firms main business is consultancy then sales otherwise will go under other income.

Cost accounting and managerial accounting are really the same thing. The key difference between managerial/cost and financial accounting is that managerial accounting information is aimed at helping managers within the organization make decisions. In contrast, financial accounting is aimed at providing information to parties outside the organization.

cost is the amount of the expenditure. In cost accounting we can find cost of goods and services. financial accouts shows the profit and loss and balance sheet made during an accounting period, and also financial position of the business as on a particular date. cost accouting provides the management detailed information regarding cost of each product, services etc. Cost Accounting focuses on the costs of production and inventory valuations. Management Accounting produces internal financial reports and analysis prepared in such a way to assist managers in making decisions (such as expense reduction, capital investment, etc.). Financial Accounting produces financial reports in accordance with GAAP and legal guidelines and would generally be the format which is distributed externally for banks, investors, etc.

Problem: Retained earnings is a balance sheet account. Therefore, you might not expect it to appear on an income statement. Explanation: A complete set of financial statements includes an income statement, a balance sheet, a statement of cash flows and a statement of retained earnings. But the statement of retained earnings can be very short (sometimes only 3 lines). As a convenience, it is frequently presented at the bottom of the income statement (Net Income + Beginning Retained Earnings - Dividends paid = Ending Retained earnings). One reason the Statement of Retained Earnings may be included on the Income Statement is that while the Income Statement only provides information about an entity's Net Income for one year, the Retained Earnings Statement provides the cumulative Income (that was not paid out in Dividends to stakeholders) since the entity began. * Net Income shows the growth of the business due to Profit for one year. * Retained Earnings show the growth of the business due to Profit since it began.

Plant asset is the machinery asset which a business use to make units of products for selling purpose to generate revenue for business.

Assuming that the stolen company vehicle is not covered by an insurance.

Determine the remaining book value.

You don't record the depreciation but instead you have to write it off or simply record the remaining book value as loss. Then record the fixed asset account as credit.

The loss is treated like an expense account.

What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements Is a church a company that could have unearned revenue?

An expense account is for wages, motor expenses, stationery etc. Expenses are what you use to be able to run your business, the same as assets.

But expenses are revenue expenditure items as mentioned above, and assets like motor vehicle and machinery are classed as capital expenditure.

So no an expense account is not an asset account, even though they are both recorded on the debit side of there accounts and both recorded in the general/main ledger.

Expenses are recorded in the profit and loss account and assets in the balance sheet.

Expenses well a majority are allowable for tax purposes and assets are claimable through capital allowances.

So assets are used in the business to generate capital and expenses are deducted from gross profit leaving a net/loss profit.

In the balance sheet net income is not treated as an asset, it is added to capital, however if one is to look a bit deeper into the the entire cycle net income would make up part of the current asset. Income from sales would increase your cash, bank of accounts receivables. Remember accounting is double entry and for every debit there must be a corresponding credit.

Accrual basis accounting provide the reader with all of the exchanges a business has, even if they are made on account. A transaction made on account is comparable to someone paying with a credit card. If the business purchased $40,000 in equipment on account, you would see this in accrual basis account but it would not show up in cash basis accounting until the business paid off the account. If you read a cash basis accounting statement, you will only see the movement of cash, many business transactions aren't made with cash.

Both accrual basis and cash basis statements contain important information, but they simply different ways of showing the activities of a business.

When the debt ratio is zero

increase or decrease in unclaimed dividend is part of cash flow from financing activities.

distributon expense is a part of selling expense. its comes under the heading of selling expense. selling expense included various other heads like advertisement expense, distribution expense, packing expense, octroi, sales tax, hidden profit, cost of product etc etc. while distribution expense is the expense occured by the producer of the goods in the form of transportation cost barred by him for making the goods reach the retailers, wholesellers or directly to the godown or factory outlet.

Grocery spending

It depends on how you have already treated the bad debt in the accounts, if you've already either written the debt off or fully provided for it then the recovery of the debt will be a P&L transaction (income statement)

The solution manual of intermediate accounting 12th edition by kieso is free.

debit accounts receivable
credit sales revenue

Retained Earnings is that portion of annual profit of a company which is not distributable to share holders of company and instead of distribution to share holders, this amount is kept in reserves of company to be spend on available future investment oppotunities to or to fulfil working capital requirement or purchase of fixed assets as well.

You will need three important pieces of data to construct a cash flow budget. The data you need are possible cash payments like loan and tax payments and rearrangements, sales forecast, and likely cash receipts like loans, grants, and tax refunds. Another item to consider is the time period, but that will depend on the size of your company.

[Debit] Cash (if any) xxxx

[Debit] Accumulated depreciation xxxx

[Debit] Loss on disposal of asset (if any) xxxx

[Credit] Asset account xxxx

[Credit] Profit on disposal of asset(if any)xxxx

which acount have a balance after a closing entry is posted?

a)salary expense

b)retained earning

c)income summary

d)revenue

The accumulated deprecation is the all the depreciation amounts should be the accumulated depreciation.

the cash flow statement is divided into 3 sections 1) cash from operating activity- here cash comes from the actual operation of the business liken ( profit after tax+ depreciation+ amortization+ changes in working capital) How to calculate: Net Income +depreciation/depletion/amortization expense +loss on sale of long term Assets -gain on sale of long term assets -increases in current assets +decreases in current assets +increases in current liabilities -decreases in current liabilites =net cash provided by operating activities 2) cash from investing activity- here the cash is generated or used up like making investments such buying of fixed assets Sales of long term assets (land, building, equipment, etc.) -purchases of long term assets +collections of Notes receivable -loans to others =Net cash provided by investing activities 3) cash from financing activity- here the cash is gererated or used up in dealing in financing activity such as like interest charges or payment of principal Issuance of stock +sale of treasury stock -purchase of treasury stock +borrowing (issuance of note receivable or bond payable) -payment of notes or bonds payable -payment of dividends =net cash provided by financing activities the result of all the activity will inform us the total cash gererated or used up in a period for which a cash flow statement is prepared then this cash balance is added up to opening balance which will give us the closing balance of cash for the period use a search engine.If you want to prepare daily cash flow which most of enterpreneur should do, you can refer to www.bestcashmanagement.com where a comprehensive tutorial for every one to follow plus Excel template that will make us easier to prepare.