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Can you provide examples of assets and liabilities in a financial statement?
Assets in a financial statement are things of value that a company owns, like cash, inventory, and equipment. Liabilities are debts or obligations that a company owes, such as loans, accounts payable, and accrued expenses.
Where do pension liabilities go on a cash flow statement?
pension liabilities are not part of cash flow statement rather it is part of balance sheet until paid.
What is the accrued liablilties of a firm?
Accrued liabilities are expenses that a firm has incurred but has not yet paid or recorded in its accounts. These liabilities represent obligations that the company needs to settle in the future, such as wages, taxes, or interest expenses that have accumulated over time. They are typically recorded on the balance sheet under current liabilities, reflecting the company’s short-term financial obligations. Accrued liabilities are important for accurately assessing a company's financial health and cash flow management.
How do you do the accounting for accrual director fees?
To account for accrual director fees, first, determine the amount owed for services rendered by directors within the accounting period, regardless of when the payment is made. Record the accrued fees as a liability in the balance sheet under "Accrued Liabilities" and simultaneously recognize the expense in the income statement. When the payment is eventually made, debit the accrued liabilities account and credit cash or bank. This ensures that expenses are matched to the period in which they were incurred, adhering to the accrual basis of accounting.
If accrued revenue is left out of financial statement what are effects on in come statement balance sheet cash flow statement?
Assets (accrued revenue) is understated. Accrued taxes are understated (unaccrued revenue times tax rate) Retained earnings are understated (amount of revenue not accrued less the accrued income tax) Income statement revenue is understated Income tax expense is understated (unaccrued revenue times tax rate)
What is accounting entry for directors fees?
The accounting entry for directors' fees typically involves recording an expense and a liability. When the fees are incurred, you would debit the Directors' Fees Expense account and credit the Accrued Liabilities or Accounts Payable account. This reflects the expense recognized in the income statement while acknowledging the obligation to pay the directors. Upon payment, you would then debit the Accrued Liabilities or Accounts Payable and credit Cash or Bank.
What is the accounting entry for Accrued Expense?
Dr. Accrued Expense Cr. Cash or Cash in bank
What is the journal entry for payment of accrued expense?
debit accrued expensescredit cash / bank
Which accounting statement best addresses the fact that a firm that's profitable on paper can be forced into bankruptcy a. statement of cash flows b. balance sheet c. income statement?
Statement of Cash Flows because cash is king, and if the company does not have enough cash to pay current liabilities it would either need short-term financing or would go bankrupt. Remember, that that income statement is based on accrual accounting, so revenues are stated when they are earned, not when cash is received, and expenses are stated when they are accrued, not when the company actually pays out the cash.
What is the difference between fund flow statement and cash flow statement?
nothing both r similarAlternate answer:The fund flow statement shows the sources and uses of working capital. Working capital equals current assets minus current liabilities (usually excluding the short term portion of interest bearing debt). The cash flow statement explains the change in cash (and cash equivalents), by showing the change in cash as a result of operating, investing and financing activities. The sum of these equal the change in cash over the period.An important difference is that working capital is broader than 'just' cash (and cash equivalents). For example, working capital can increase even though cash is decreasing (for example when the increase in inventory and accounts receivables is larger than the cash decline).Nowadays companies provide a cash flow statement.
Operating Cash Flow to Current Liabilities Ratio?
operating cash flow to current liabilities ratio = cash flow from operations / avg. total liabilities
How do you calculate net capital expenditure?
C can be calculated by adding your cash flow from investing actives and financing activities this can be found in the statement of cash flows. From FCF = NOPAT + Depr change in non cash working capital C
