Financial Statements

objectives:

1. provide reliable financial information.

2.provide other needed information about changes in economic resources and obligation.

3. provide reliable information about changes in net resources.

4. providing financial information that assess in estimating the earnings of a business.

5. to disclose other information according to the needs of the users.

The balance sheet quantity of a company's common stock equity. This quantity equals total assets less liabilities, preferred stock, and intangible assets such as goodwill. Stockholder's equity consists of contributed capital and retained earnings. The quantity of stockholder's equity indicates how much the company would have left over in assets if it were to go out of business immediately. As most companies are expected to grow and generate more profits in the future, they end up being worth far more in the marketplace than the value of their stockholders' equity. This is why stockholder's equity is more important to value investors than growth investors. Stockholder's equity is often called the book value of a company

Yes premises is a tangible fixed asset because you can physically ensure the existence of premises like building etc and intangible assets are those assets which cannot be check physically.

is this for NYIT accounting class?

Debit whichever account you take the money from to put into petty cash.
Example:
transfer cash from checking to petty cash
write check to deposit to petty cash
or
petty cash fund is replenished at the end of each month so that that all expenses are recorded in the moth they are incurred. Debit general and credit cash.

The bank over draft appears in borrowings under liabilities heading

cash sales, credit sales,purchase on account,collection from sales on account,settlement of purchase on account, direct purchase on cash,installment sales and installment payment

The net income appears on both the income statement and the statement of owner's equity. This is an important operating datum in financial terms.

No, even though accumulated depreciation has a credit balance, it is shown under assets. Accumulated depreciation is a contra T-account to a fixed tangible asset. For example, "Accumulated depreciation machines" is a contra T-account to "Machines".

Contra T-accounts are presented together with the T-account they are connected with. Therefore, accumulated depreciation is shown on the debit side with assets. As it has a credit balance, the balance is subtracted. (The sign of a T-account 'flips' when the T-account is included on the opposite side on the balance sheet.)

Also known as Accounting Close or Closing.

It is the process by which Financial Statements (Income Statement, Balance Sheet & Cash Flow Statement) are generated. It takes place at the end of an accounting period i.e. end of the month, end of the quarter, end of the year (either calendar or fiscal year).

write up the entries required in revaluation account?

Account receivable is that part of sales which are done on credit so if company received cash at the time of sales that would be asset as well so it is the amount which is receivable in future so it is current asset of company.

Retained earning means: Not distributing profits to stake holders and keeping

the profits of a company for the use of the business entity either for working capital or for new projects etc.,

Dividends means: Distribution of profits earned by a company to the stakeholders ( loosing funds earned as profits

to stake holders )

General purpose financial reports are a common set of reports issued by most companies. Special purpose financial reports are specific reports related to individual events.

The cost of goods sold on an income statement represents the total cost to acquire and process the products/services sold to generate revenue.
For example, if one manufactures cars, the COGS would include the cost of the parts and the labor directly associated with assembling the car.

Unearned fees show up under liabilities. Liabilities are obligations (to pay cash, render services, or deliver goods) to other parties. When customer pay in advance, the firm has an obligation to the customer.

When the firm does deliver the products/render the services, the liability unearned revenues is reduced and sales are recognized. This is an application of accrual accounting, since the time of the cash inflow is not the same as the time of the sale.

Asset: It is a resource controlled by the entity with the future economic benefit flowing to the entity as a result of past transaction.

Assets, Liabilities, and Stockholder's Equity are all permanent accounts.

The amount by which revenue exceeds expenses. If expenses exceed revenue it is a net loss.

Under American accounting standards, assets are typically valued at historical cost (less any accumulated depreciation or amortization). The alternative valuation is fair value, which is what that asset would be worth on the market. International Accounting Standards allow (but do not require) reporting at fair value. While the information may be more relevant, it is not necessarily reliable. Multiple appraisers could come up with completely different values for the same asset.

Sales returns from customers and discount allowed to customers are deducted from total sales to arrive at net sales.

You can close a bank account by visiting your bank branch and providing your identification. you can submit a written request to close the account and surrender your check book, ATM card etc. Once the bank is satisfied with all the requisite formalities, they can close your account and pay you the money you held in your account.