0
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
What are financial statement of a proprietorship?
The financial statement of a proprietorship are its Balancesheet,Profit & Loss A/c,Trading A/c.
Why are shareholders interested in the financial report?
Shareholders are interested in the financial report because it provides them with information about the company's financial performance and health. It helps them evaluate the company's profitability, cash flow, and overall financial stability. This information is crucial for making informed investment decisions and assessing the value of their shares.
Does retained earnings go on the income statement?
Retained earning is that part of profit which is not distributed to share holders so it is not part of income statement rather it is part of balance sheet.
Which fixed asset their no charge depreciation?
Land is the only fixed asset which has no depreciation charge because land does not depreciate it's value.
What is the journal entry when capital is introduced by depositing into bank?
Debit Bank account xxxx
Credit Capital account xxxx
Job description of credit analyst?
Credit analysts (or credit risk analysts) undertake risk assessment analysis of various types of lending proposals from the straightforward to the very complex, which can be for amounts in excess of £50million. Credit analysis offers a variety of career opportunities within the increasingly diverse financial services sector. Credit analysts are employed within a variety of financial institutions ranging from banks (commercial or investment banking) to credit rating agencies and investment companies. The role demands a strong combination of interpersonal, analytical and decision-making skills. The role is very much centred on risk management: risks must be understood and communicated, and credit exposures kept in line with the employer's limit on risk bearing. Typical work activities will depend on the business of the employer and the specific role, but can include: * providing quality service to internal customers through undertaking risk assessment analysis of various types of lending proposals; * analysing financial information, such as statements, management accounts and cash flow statements; * developing models of credit information to predict patterns and trends using specialist statistical software; * assessing the credit worthiness of client companies; * advising and recommending changes to policy and procedure; * liaising with other staff within the company, such as account managers and product specialists; * helping to ensure that procedures comply with sector standards; * staying informed about the legal, compliance and market-risk-related issues involved in the approval of credit. - David A.
Functions of accounting department in hotel?
The accounting department in the hotel is responsible for all accounts receivable and accounts payable. They are responsible for balancing the books and making sure everything passes audit.
Why depreciation on an existing asset is always irrelevant?
Depreciation is an invisible, non-cash cost and it is irrelevant when calculating the cash flow of the company which is the true indicator of whether the company is making a profit or not. Depreciation is also irrelevant because it is not truly realized until the asset is resold or scrapped at the end of its life. Recording it every year is consistent with the theory of conservatism when writing off costs. Depriciation is also irrelevant for the existing assets becoz it is fixed and fixed costs are always irrelevant unless they are incremental
Keeping track of your finances and accounting for them. Finances are money and bills and anything having to do with money and accounting is counting and marking down where/ and how much money is coming in and where and how much money is going out.
Financial accounting is the process of recording and measuring the economic performance of how money is treated.
Which one of the approaches for the allowance procedure emphasizes the net realizable value of accounts receivable on the balance sheet?
Can depreciation be for fixed asset only?
Depreciation is the method of allocating the amount of fixed asset to the fiscal year in which that asset utilized and it is only applicable to fixed assets because current assets are fully utilizable in current year that's why full amount of current assets are charged to income statement.
No, petty cash is a control account not an expenditure account.
What are the typical items reported as current liabilities?
Following are items of current liabilities:
- accounts payable
- short term loans
- short term portion of long term loan etc
How do you do an income statement if all expenses were collected in cash?
Do you mean that all expenses were PAID in cash? If so, you need to figure out how much cash went out (for the Expenses portion of the income statement) . For the cash outflow amount, you have to create a schedule of the vendors you paid and what goods and services you paid for. Use invoices and receipts and bank statements (for online payments you made). Then categorize the payments by type of expense.
What are non cash items in a cash flow statement?
Non-cash items include any outflows or inflows that are accrued over time such as deprecitaion/amortization expenses or accretion expenses but are not necessarily physical cash outflows (the money is not going anywhere perse). Hope that helps.
Which financial statement summarizes the changes in retained earnings?
Stetement of retained earnings summarizes the changes occured in retained earnings from opening balance to closing balance.
Why and how depreciation affects the value of the fixed assets on the Balance Sheet?
Fixed assets are those assets which are used in business for more than one fiscal year that's why it must be reduced in some manner to allocate it's cost in all those years in which it is utilized so depreciation is the method through which this is achieved. Depreciation has a contra account to specific assets through which assets value is reduced as expense in income statement and as well as used to reduce the actual price of asset from balance sheet.
Example:
if an assets value of $100 is used for 10 years then depreciation of $10 is spread for all those 10 years and shown in income statement as expense as well as reduction of $10 each year from balance sheet until 10th year after which asset will be fully utilized and depreciated from business.
What is the difference between Accountability and liability?
Liability is where a business allows shareholders to have control over a business. Liability in French means check out my big saggy old man balls.
What is Financial comparative statement?
financial comparison statement is a statement showing the trend in which financial figures are changing between two accounting period.
A student have answered 8 0ut 0f 10 questions how many choices has he?
TWO - He can continue and answer the other two questions or - he can quit and go get a beer................................
Calculate net interest margin from bank financial statement?
I have the published financial statements of commercia banks, I would like to identify the elements used to calculate the 'net interest margin' Thanks
{| ! width="35%" align="left" | Job Outlook | ! width="35%" |
! width="30%" align="right" |
| Strong growth of accountants and auditor jobs over the 2006-16 decade is expected to result from stricter accounting and auditing regulations, along with an expanding economy. The best job prospects will be for accountants and auditors who have a college degree or any certification, but especially a CPA. Employment change. Employment of accountants and auditors is expected to grow by 18 percent between 2006 and 2016, which is faster than the average for all occupations. This occupation will have a very large number of new jobs arise, almost 226,000 over the projections decade. An increase in the number of businesses, changing financial laws, and corporate governance regulations, and increased accountability for protecting an organization's stakeholders will drive growth. As the economy grows, the number of business establishments will increase, requiring more accountants and auditors to set up books, prepare taxes, and provide management advice. As these businesses grow, the volume and complexity of information reviewed by accountants and auditors regarding costs, expenditures, taxes, and internal controls will expand as well. The globalization of business also has led to more demand for accounting expertise and services related to international trade and accounting rules and international mergers and acquisitions. An increased need for accountants and auditors also will arise from changes in legislation related to taxes, financial reporting standards, business investments, mergers, and other financial events. As a result of accounting scandals at several large corporations, Congress passed the Sarbanes-Oxley Act of 2002 in an effort to curb corporate accounting fraud. This legislation requires public companies to maintain well-functioning internal controls to ensure the accuracy and reliability of their financial reporting. It also holds the company's chief executive personally responsible for falsely reporting financial information. These changes are expected to lead to increased scrutiny of company finances and accounting procedures and should create opportunities for accountants and auditors, particularly CPAs, to audit financial records more thoroughly. Management accountants and internal auditors increasingly will also be needed to discover and eliminate fraud before audits, and ensure that important processes and procedures are documented accurately and thoroughly. Also, efforts to make government agencies more efficient and accountable will increase demand for government accountants. Increased focus on and numbers of financial crimes such as embezzlement, bribery, and securities fraud will increase the demand for forensic accountants to detect illegal financial activity by individuals, companies, and organized crime rings. Computer technology has made these crimes easier to commit, and they are on the rise. At the same time, the development of new computer software and electronic surveillance technology has made tracking down financial criminals easier, thus increasing the ease, and likelihood of, discovery. As success rates of investigations grow, demand for forensic accountants will increase. The changing role of accountants and auditors also will spur job growth, although this will be slower than in the past because of changes in the law. Federal legislation now prohibits accountants from providing many types of management and consulting services to clients whose books they audit. However, accountants will still be able to advise clients that are not publicly traded companies and those they do not audit. Also, the increasing popularity of tax preparation firms and computer software will shift accountants away from tax preparation. As computer programs continue to simplify some accounting-related tasks, clerical staff will increasingly handle many routine calculations. Job prospects. Overall, job opportunities for accountants and auditors should be favorable. Those who earn a CPA should have excellent job prospects. After most States instituted the 150-hour rule for CPAs, enrollment in accounting programs declined. However, enrollment is again growing as more students have become attracted to the profession by the attention from the accounting scandals. In the aftermath of the accounting scandals, professional certification is even more important to ensure that accountants' credentials and knowledge of ethics are sound. Regardless of specialty, accountants and auditors who have earned professional recognition through certification or licensure should have the best job prospects. Applicants with a master's degree in accounting or a master's degree in business administration with a concentration in accounting also will have an advantage. Individuals who are proficient in accounting and auditing computer software or have expertise in specialized areas-such as international business, specific industries, or current legislation-may have an advantage in getting some accounting and auditing jobs. In addition, employers increasingly seek applicants with strong interpersonal and communication skills. Many accountants work on teams with others who have different backgrounds, so they must be able to communicate accounting and financial information clearly and concisely. Regardless of qualifications, however, competition will remain keen for the most prestigious jobs in major accounting and business firms. In addition to openings from job growth, the need to replace accountants and auditors who retire or transfer to other occupations will produce numerous job openings in this large occupation. |}
Formula for net operating expenses?
operating exepnces = (total admn expences+depreciation(+/- interest and other bank charges)(+/-gross profit))
