Financial Statements

The auditor apparently is misinterpreting the reliable evidence presented to them.

It would be advisable to have an experienced, licensed (CPA/EA) tax representative working for you to aid in this matter.

Taxpayers such as yourself often mislead auditors with how they present information to them.

Depreciation expense is part of income statement all other expenses are also part of income statement and that's the main purpose of preparing income statement to show all incomes and expenses.

DR investments in branch Cr cash cash sent to branch and also if the problem uses the periodic inventory system it uses the ff: HOME OFFICE BOOKS BRANCH BOOKS DR investment in branch xxx DR shipments from HO xxx CR shipments to branch xxx CRHO xxx ****** shipping of merchandise

Standards are important because it helps businesses become consistent. With a standard, investors can care financial documents of different companies easier.

Aside from being required by law in many instances, the Balance Sheet is a fundamental statement and summary of one of the three most important aspects of a business that can be stated in dollar terms. (The others being the Income Statement and the Statement of Changes in Financial Position.) If the Income Statement shows what you 'got' and where it 'went' (and it does), then the Balance Sheet shows what you 'have'. Knowing what you 'have' is important for a business because it shows the 'assets' at your command available to be used in the conduct of the business in which you are engaged, and the 'liabilities' that you are responsible for repaying, as well as the 'equity', or that part of what you have that belongs to you and you alone. In the case of public companies that are required by law to publish financial statements, the Balance Sheet shows what investors are buying a piece of (in addition to the future earning potential inferred from the Income Statement), and how large the liabilities are compared to their share. In the case of private companies, knowing these things is necessary to run the business successfully, and ultimately, if the company assumes liabilities, how 'solvent' the company is, or, crudely, how close it is to going bankrupt. To put it another way, the Balance Sheet simply represents the final summary of the accounting of all that you own, all that you owe, and what's left for you.

Cost of goods plus gross profit margin equals to total sales revenue of firm.

Be Careful depreciation is an accounting function but when booked on the P&L it better be going to a depreciation "Sweep Account". Otherwise you are booking depreciation as paper money only! And four or five years down the road you will have nothing to show for it.

No building is asset for business and like all other assets which shows in balance sheet building also part of balance sheet and not income statement.

• So that people will allow you to have credit cards and other cards that you would find harder to have if you have bad credit, you could even become black listed which means you will not be able to have a credit card or anything like that again. It also helps you in jobs to do with financial work.
• Hope this helps.. : )

The accrual concept concerns the matching of costs and revenues for the reporting period.

both.. balance sheet under liquid asset..income statement under inflow/income..

Financial accounting relates to the information presented based on past events and records.

Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends. e.g. projected cashflows, profit & loss, balance sheet...

Financial accounting relates to the information presented based on past events and records.

Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends. e.g. projected cashflows, profit & loss, balance sheet...

Financial accounting reports are in standard formats which are worldwide accepted , where as Cost accounting reports are in the format as required by the management

The difference resulting from translating a given number of units of one currency into another currency at different exchange rates is Exhcnage Gain loss. Exchange differences arising when monetary items are settled or when monetary items are translated at rates different from those at which they were translated when initially recognised or in previous financial statements are reported in profit or loss in the period, with one exception. [IAS 21.28] The exception is that exchange differences arising on monetary items that form part of the reporting entity's net investment in a foreign operation are recognised, in the consolidated financial statements that include the foreign operation, in a separate component of equity; they will be recognised in profit or loss on disposal of the net investment. [IAS 21.32] If a gain or loss on a non-monetary item is recognised directly in equity (for example, a property revaluation under IAS 16), any foreign exchange component of that gain or loss is also recognised directly in equity. [IAS 21.30] Prior to the 2003 revision of IAS 21, an exchange loss on foreign currency debt used to finance the acquisition of an asset could be added to the carrying amount of the asset if the loss resulted from a severe devaluation of a currency against which there was no practical means of hedging. That option was eliminated in the 2003 revision.

[Debit] Cash / bank xxxx

[Debit] Accumulated Depreciation xxxx

[Credit] Asset xxxx

[Credit] Gain on sale of asset [balancing figure) xxxx

I think that you mean a debit which goes on the left side of the journal or in your record book

it is combined statement of parent company and subsidary company

Purchase a/c Dr

Input vat a/c Dr

To Party a/c

(Being goods purchased on credit from supplier/creditor.)

A bank manager would want to see a businesses cash flow forecast due to several reasons as:-

It will show whether the business is Ina good financial position or not.

It will lead the manager to decide whether to lend a bank loan or not.

The bank manager can see how the business was existing for a period of time.

After looking at the cash flow forecast the manager can decide whether to let the business have transactions with the bank or not. It will also show how the business have been utilizing their profits in a profitable way and also seeing whether the buisness is holding too much of cash.

If dividend received is reinvested then there is no journal entry is required and this information can be mentioned through the use of memo entry.

There is no journal entry required for dividend received reinvested as nothing is received by person or company so memo entry is enough for information purpose.

Yes.

Accumulated depreciation is a contra asset account, which means it has an opposite balance from a normal asset account. It is used to reduce the balance whatever asset you are deprecating. When you total your assets on the balance sheet, you deduct the cost of Accumulated depreciation from your assets to get the true worth of your assets.

A financial statement includes the following:

Current Assets

Non-Current Assets

(add those together) Total Assets

Current Liabilities

Non-Current Liabilities

(add those together) Total Liabilities

(Total assets less total liabilities) Net Assets

Equity is calculated below and the total of equity needs to balance with the net assets figure.

Debit.

For online help in the basics of bookkeeping, and for information about recording business transactions, see the Related Link.

National Advisory Committee on Accounting Standards