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Financial Statements
A financial statement is a record of the financial activities of a person or business entity where all related financial information are presented in an orderly manner and can be easily understood.
5,583 Questions
http://www.scribd.com/doc/8398366/Joint-Stock-Company Look for (b)Annual General Meeting
Can officers salary be considered a Cost of goods sold?
Is the promotion expenses for a certain slow moving item can be add to the cost of sales of this item ? This answer is not an answer but another (totally different) question. The question I need answered is: "Can an officer's salary be considered a cost of goods sold?"
What is the purpose of a 10 column worksheet?
To display a worksheet with ten columns. If this does not answer your question, please re-word the question to give more context for your thoughts and ask again.
What is cashing in dot net and what is process?
When we require some data frequently, that data can be stored into memory instead of database and it access from memory is called cashing.
Why are used goods financial assets and government assets not counted as GDP expenditures?
why goods r not assets
What is a basic cost statement?
A basic cost statement includes materials, labor and overhead expenses needed for a project. Its purpose is to help managers and owners track how much money is spent on certain activities.
How can you find the previous year retained earnings?
In addition, the footnotes contain additional detailed information on key accounting policies and various statements. One of these statements will show the changes in equity, including retained earnings. The beginning of year balance of retained earnings in this statement will be the same as the ending balance included on the balance sheet of the previous year.
Whether international harmonisation of accounting standards is a good idea?
What is the difference between net contribution to net profit?
net contribution is contribution from customers while net profit is from all expenses deducted
Who is responsible for the preparation of the financial statement in Apple Inc?
The responsibility for the preparation of financial statements at Apple Inc. lies primarily with its management team, specifically the Chief Financial Officer (CFO) and the finance department. They ensure that the financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and that they accurately reflect the company's financial position. Additionally, the Board of Directors oversees this process, while external auditors review the statements for accuracy and compliance.
Cash investments made by the owner to the business are reported on the statement of cash flows in the financing activities section. This section reflects cash flows related to transactions with the company's owners and creditors, including capital contributions, loans, and dividends. Owner investments indicate a commitment to the business and can influence its financial stability and growth potential.
What are Managerial uses of fund flow statements?
2. The quantum of working capital is revealed by the schedule of working capital changes, which is a part of fund flow statement.
3. The fund flow statement is the best and first source for judging the repaying capacity of an enterprise.
4. The management will be able to detect surplus/shortage of fund balance.
5. The fund from operation is not mentioned in the profit and loss account and balance sheet but it is separately calculated for the purpose of fund flow statement.
The periodic expense created by allocating the cost of fixed assets to the periods in which they are used is called depreciation. Depreciation reflects the wear and tear, usage, and obsolescence of the asset over time, allowing businesses to match the asset's cost with the revenue it generates. This accounting practice helps in providing a more accurate financial picture of a company's performance.
What affect does applying the relevance concept have on the financial statements?
Applying the relevance concept in financial statements ensures that the information presented is pertinent to the decision-making needs of users. This means including data that can influence investment, credit, and other economic decisions while omitting irrelevant information that could clutter the analysis. As a result, financial statements become more useful and provide clearer insights into the entity's financial position and performance. Ultimately, this enhances the overall quality and effectiveness of financial reporting.
The statement is misleading because it implies a direct relationship between cash balance and net income, which are different financial metrics. The cash balance reflects the actual cash available at a specific point in time, while net income represents profit over a period, accounting for revenues and expenses. A clinic can have a high cash balance despite low net income due to prior cash inflows or retained earnings, or conversely, low cash despite high net income due to delayed cash collections. Thus, the two figures should not be directly compared without considering the broader financial context.
How does run off cash flow affect the repricing model?
Run-off cash flow impacts the repricing model by altering the expected cash flows from assets and liabilities over time. As cash flows from maturing assets are reinvested or used to pay down liabilities, the timing and amount of cash flows can change, affecting interest rate risk assessments. This can lead to adjustments in the model's sensitivity to interest rate fluctuations, ultimately influencing a financial institution's strategy for managing its balance sheet and capital requirements. Consequently, accurately forecasting run-off cash flows is essential for effective repricing and risk management.
How do you record a Intangible asset in journal entry?
To record an intangible asset in a journal entry, you typically debit the intangible asset account for the purchase price or cost incurred to acquire it. If applicable, you also debit any related costs, such as legal fees or registration costs. The corresponding credit would usually be made to cash or accounts payable, depending on how the asset was financed. For example, if a company purchases a patent for $10,000, the journal entry would be: Debit Patent $10,000 and Credit Cash $10,000.
Net assets employed refers to the total assets of a business minus its current liabilities, reflecting the net investment in the company's operations. It represents the capital that is actively utilized to generate revenue and support business activities. This metric is important for assessing the efficiency and effectiveness of a company's use of its resources. In financial analysis, it can help in evaluating return on investment and operational performance.
To calculate the cash flow from assets, you start with the operating income, add back depreciation, subtract cash taxes, and then account for changes in net operating working capital.
The formula is:
Cash Flow from Assets = Operating Income + Depreciation - Cash Taxes - Increase in Net Operating Working Capital.
Plugging in the numbers:
Cash Flow from Assets = 3.9 billion + 0.3 billion - 0.7 billion - 0.6 billion = 2.9 billion.
Therefore, the firm's cash flow from assets is 2.9 billion.
Why are financial ratios used to assess a companys financial performance?
Financial ratios are usually done at the beginning of every fiscal year within the organization and goals are set in order to maximize profitability. These ratios are reevaluated and looked at usually every quarter to determine how business is running within the organization. Without the financial ratios, it would be difficult for organizations to determine if they are running their operations efficiently. If the numbers are not matching up between 'the planned ratio' and 'the actual ratio' then the organization will need to take a closer look into the operations of less successful stores.
What is a legal form or type of time sheet for the self employed?
A person who is self-employed might use a ledger to keep track of time. An invoice is also a good tool to record time for the self-employed.
The Balance sheet in India the liability is on the left hand side asset is on the right hand side?
Liabilities' side of balance sheet deals with how the funds are raised whereas the assets' side of balance sheet deals with how the funds are invested. Firstly the funds are raised (by incurring liabilities) after which they are invested (asset formation). Left-to-right is a general way of reading/writing, hence the liabilities side would appear before assets.
Depreciation of a Fixed Asset is always carried on the Balance Sheet in the Accumulated Depreciation Account (contra-asset). It is never deducted from the Fixed Asset.
One reason for the Accumulated Depreciation account is that eventually, individual assets will be fully depreciated and their net values will be zero. If the depreciation were deducted from the asset, it would "fall off" the balance sheet. The accumulated depreciation account allows the assets to remain at book value in the asset account to maintain their visual presence on the books.
The depreciation entry debits depreciation expense and credits accumulated depreciation.
