Profit (loss) for the period = Revenues - Expenses
|
|
- Susan Smith
- 7 years ago
- Views:
Transcription
1 ADDITIONAL NOTES FOR TEI MBA (CHAPTER ) THE PROFIT and LOSS ACCOUNT (INCOME STATEMENT) Measures and reports the profit or loss generated during a period. Profit (loss) for the period = Revenues - Expenses REVENUES a. inflows of economic benefits arising from the ordinary activities of a business b. these benefits will result in increase in assets or c. decreases in liabilities. EXPENSES a. outflows of economic benefits arising from the ordinary activities of a business b. this loss of benefits will result in decrease in assets or c. increases in liabilities. Even though we can compute profit and loss by adjusting the capital section of the balance sheet, an appendix to capital, the Profit and Loss Account, is prepared, and the net profit is transferred to capital on the balance sheet. JAB Legal Services Profit and loss account For the Year Ended December 31, 2013 Revenues Legal Services Earned 3,500 Expenses Equipment Rental Expense 1,000 Wages Expense 400 Utilities Expense 300 Total Expenses 1,700 Net Profit 1,800 Net profit is a residual amount. For a P &L account of a trading company see page.., in the notes. 1
2 COST OF SALES or COST OF GOODS SOLD during the period. Represents the cost of goods that were sold during the period, not the cost of goods purchased during the period. Inventory accounting systems a. Perpetual This system provides and records, not only the sale, but also the cost of the item sold, immediately after sale. This is done by large retailers and other big companies that use computerized accounting systems or required for other reasons. With this system we know, perpetually, the goods (quantity and cost) we have sold and the goods (quantity and cost) we have in stock. b. Periodic This system provides and records, only the sale, and not the cost of the item sold, immediately after sale. This is done by small size companies. THESE companies identify the cost of sales amount at the end of an accounting period. With this system we do not know, the goods (quantity and cost) we have sold and the goods (quantity and cost) we have in stock. This information is obtained after we take a physical stock count (closing stock) and do the following computation: Cost of sales = Opening stock + Purchases Closing stock See example page., notes. INVENTORY COSTING METHODS Profit and the financial position of a business will be affected by the way we measure the cost (value) of the closing stock, especially in periods of price changes. a. Specific identification (used by companies that sell specific, limited quantity, high value items). b. First in, First out (FIFO), the earliest stocks held are the first to be sold. c. Last in, First out (FIFO), the latest stocks held are the first to be sold. d. The weighted average cost (AVCO) EXAMPLE Based on example below (or page notes), apply the above methods (except a) and compute the gross profit under each method if sales (9000 at 15). Assume a business had the following inventory transactions during May: Units Cost/ Unit Total cost 1 May Opening stock 1, ,000 2 May Purchased 5, ,000 3 May Purchased 8, ,000 Total stock Available for sale 14, ,000 6 May Sold (9,000) Closing Stock 5,000 2
3 FIFO Cost of Sales Closing Stock Units Cost/unit Total Units Cost/unit Total 1 May 1, ,000 2 May 5, ,000 3 May 3, ,000 5, , ,000 60,000 LIFO Cost of Sales Closing Stock Units Cost/unit Total Units Cost/unit Total 3 May 8, ,000 2 May 1, ,000 4, ,000 1 May 1, , ,000 54,000 AVCO a. Compute total cost of stock available for sale. b. Compute average cost per unit Average cost = 161,000/14,000 = 11,5 per unit c. Multiply closing stock and units sold by average sost. Cost of Sales Closing Stock Units Cost/unit Total Units Cost/unit Total 9,000 11,5 103,500 5,000 11,5 57,500 GROSS PROFIT CALCULATION VALUATION EFFECTS FIFO LIFO AVCO Sales revenue 135, , ,000 Cost of Sales 101, , ,500 Gross profit 34,000 28,000 31,500 Rising prices -FIFO will give the highest gross profit and LIFO the lowest closing stock and profit. Falling prices -The position of FIFO and LIFO is reversed. 3
4 PROFIT MEASUREMENT - RECOGNITION OF REVENUE/EXPENSES When is revenue recognized? The Realization Convention: Revenue should be recognized when it has been realized (earned). (For a trading company this is when the title of ownership passes to the buyer, for a service company when the service is rendered). TIMING difference between the recognition of revenue and the receipt of cash. Under accrual accounting revenue is recognized when realized, regardless if collected or not. In other words, revenue in the profit and loss account would be different than total cash received. The difference will appear as an asset Debtors or Receivables from customers. However, there are occasions when it is the other way around; usually because business demands payment before providing the service. When is expense recognized? The Matching Convention: Expenses should be matched to the revenue that they helped to generate. TIMING difference between the recognition of expense and the payment of cash. Under accrual accounting expenses are recognized when occured, regardless if paid or not. In other words, expenses in the profit and loss account would be different than total cash paid. The difference represents an outstanding liability at the balance sheet date and will be included under the heading Accrued Expenses or Accruals (a current liability). Examples: However, there are occasions when it is the other way around; usually because business demands payment before providing the service, or other reasons. Examples: prepayment of rents, of insurance etc.. Since the amount paid refers to more than one accounting period, the amount that refers to future accounting periods, is treated as a Prepaid Expense on the asset side in the balance sheet, and will become an expense in the next year. The Prepaid Expense is treated as a current asset. (notes pg: ) 4
5 PROFIT MEASUREMENT CALCULATION OF DEPRECIATION DEPRECIATION: Is the allocation of the cost of a fixed asset to expense over its estimated useful life in years or units of production. Depreciation relates to tangible (except land) non-current and to intangible non-current assets. Factors considered calculating depreciation (amortization for intangibles): a. The depreciable cost (or fair value) of the asset. Cost includes all expenditures needed to put the asset in operational use. b. The estimated useful life of the asset. The economic value is estimated and not the physical life (could be longer). c. The residual (scrap or salvage or disposal) value of the asset. d. The depreciation method. DEPRECIATION METHODS EXAMPLE: January 1 of Year 1 Company X purchased a machine, cost 40,000 with useful life 4 years and residual value 1,024. a. Straight-line Depreciation is an equal amount for each year the asset is held. Depreciation per year= (Cost Residual Value)/ Estimated useful life Annual depreciation = (40,000-1,024) / 4 = 9,744 would show on the Profit and Loss Account. The amount of depreciation relating to the asset will be accumulated for as long as the asset is owned by the business. The accumulated depreciation will increase each year. The accumulated amount will be deducted from the cost of the asset on the balance sheet. For Year 2 the presentation on the balance sheet: Machine at cost 40,000 Less Accumulated depreciation 19,488 20,512 The amount 20512: book value or carrying value of the asset. b. Accelerated or reducing balance method. Results in relatively large amounts of depreciation in the early years of an asset s life and smaller amounts in later years. Depreciation is computed by multiplying the remaining carrying value of the asset by a fixed percentage; assume 60%, and 50%. The double-declining-balance method is a form of the declining-balance method; it uses a fixed percentage that is twice the straight-line depreciation percentage. Book Value Rate Depreciation Book Value Y 1 40,000 60% 24,000 16,000 Y2 16,000 60% 9,600 6,400 Y3 6,400 60% 3,840 2,560 Y4 2,560 60% 1,536 1,024 Regardless of the method, the total amount of depreciation will be the same. (notes: p. ) 5
6 c. Units of production method (units, hours, miles etc.) Depreciation expense will be proportionately to the units of production. d. Diminishing Balance method and other methods PROFIT MEASUREMENT BAD/DOUBTFUL DEBTS BAD DEBTS : when customers do not pay from sales on credit a. Irrecoverable Write 0ff customer, in the period the sale is recognized: - reduce the debtors and - increase expenses (bad debts written off) b. Doubtful Since at the end of the year is not possible to identify customers who are not going to pay, companies try to estimate the possible loss from bad debts and create a Provision for doubtful debts, by: - examining individual accounts of debtors (aging analysis) - taking a proportion of total debtors outstanding based on past experience - taking a proportion on total credit sales of the period, based on past experience The Provision for doubtful debts will be: Shown as an expense in the P & L account Deducted from the total debtors amount in the balance sheet (so the balance will show the net realizable value. Balance sheet as at December 31, 2013 Debtors (Accounts Receivable) 340,000 Less Provision for doubtful debts 30, ,000 After a provision has been created, any customers who become irrecoverable will be written off the debtors and the Provision. If the company over-provides, any unused provision should be taken back to income. Example: notes pages., CONSISTENCY CONVENTION: When a particular method of accounting is selected to deal with a transaction, this method should be applied consistently over time. 6
RAPID REVIEW Chapter Content
RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit
More informationSETTING UP YOUR BUSINESS ACCOUNTING SYSTEM
100 Arbor Drive, Suite 108 Christiansburg, VA 24073 Voice: 540-381-9333 FAX: 540-381-8319 www.becpas.com Providing Professional Business Advisory & Consulting Services Douglas L. Johnston, II djohnston@becpas.com
More informationINTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting
www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial
More informationa. $ 65,000. b. $ 80,000. c. $130,000. d. $145,000.
注 意 1. 本 試 題 卷 共 50 題, 總 分 100 分 第 01-15 題, 每 題 1.75 分, 合 計 26.25 分 ; 第 16-35 題, 每 題 2 分, 合 計 40 分 ; 第 36-50 題, 每 題 2.25 分, 合 計 33.75 答 錯 不 倒 扣 2. 請 將 答 案 按 試 題 題 號, 依 序 填 入 答 案 卡 1.FastForward had cash
More informationAccounting Skills Assessment Practice Exam Page 1 of 10
NAU ACCOUNTING SKILLS ASSESSMENT PRACTICE EXAM & KEY 1. A company received cash and issued common stock. What was the effect on the accounting equation? Assets Liabilities Stockholders Equity A. + NE +
More informationLong Island University C.W. Post GBA 521. Final Exam - review
Long Island University C.W. Post GBA 521 Name: _ (Last name) (First name) Date: _ Final Exam - review Multiple Choice Following are 14 multiple choice questions, worth 3 points each. Clearly identify the
More informationBUSINESS BOOKS. Accounting SIXTH EDITION. Peter J. Eisen Assistant Principal Retired Accounting & Business Practice N.YC. Department of Education
BUSINESS BOOKS Accounting SIXTH EDITION Peter J. Eisen Assistant Principal Retired Accounting & Business Practice N.YC. Department of Education BARRON'S CONTENTS Preface ix 1 THE ACCOUNTING EQUATION I
More informationMIDTERM EXAMINATION. Afaaq_tariq@yahoo.com. Fall 2009
MIDTERM EXAMINATION Afaaq_tariq@yahoo.com Fall 2009 FIN621- Financial Statement Analysis Asslam O Alikum FIN621- Financial Statement Analysis (Session 3) solved by Afaaq n Shani Bhai with reference n numerical
More informationIM SYLLABUS (2015) ACCOUNTING IM 01 SYLLABUS
IM SYLLABUS (2015) ACCOUNTING IM 01 SYLLABUS 1 Accounting IM01 Syllabus (Available in September) 1 Paper (3 hrs) Introduction The syllabus seeks to develop sound financial literacy, and the presentation
More informationCOMPONENTS OF THE STATEMENT OF CASH FLOWS
ILLUSTRATION 24-1 OPERATING, INVESTING, AND FINANCING ACTIVITIES COMPONENTS OF THE STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES + Sales and Service Revenue Received Cost of Sales Paid Selling
More information國 立 體 育 學 院 九 十 六 學 年 度 學 士 班 轉 學 考 試 試 題
國 立 體 育 學 院 九 十 六 學 年 度 學 士 班 轉 學 考 試 試 題 會 計 學 ( 本 試 題 共 8 頁 ) 注 意 :1 答 案 一 律 寫 在 答 案 卷 上, 否 則 不 予 計 分 2 請 核 對 試 卷 准 考 證 號 碼 與 座 位 號 碼 三 者 是 否 相 符 3 試 卷 彌 封 處 不 得 汚 損 破 壞 4 行 動 電 話 或 呼 叫 器 等 通 訊 器 材 不
More informationChapter 9. Plant Assets. Determining the Cost of Plant Assets
Chapter 9 Plant Assets Plant Assets are also called fixed assets; property, plant and equipment; plant and equipment; long-term assets; operational assets; and long-lived assets. They are characterized
More informationACCOUNTING ENTRANCE EXAMINATION PRACTICE QUESTION SET J.M. TULL SCHOOL OF ACCOUNTING ENTRANCE EXAMINATION PRACTICE QUESTION SET
ACCOUNTING ENTRANCE EXAMINATION PRACTICE QUESTION SET J.M. TULL SCHOOL OF ACCOUNTING ENTRANCE EXAMINATION PRACTICE QUESTION SET Important: PRINT your response (A,B,C,D or E) that best completes the statement
More informationLarge Company Limited. Report and Accounts. 31 December 2009
Registered number 123456 Large Company Limited Report and Accounts 31 December 2009 Report and accounts Contents Page Company information 1 Directors' report 2 Statement of directors' responsibilities
More informationPrinciples of Financial Accounting ACC-101-TE. TECEP Test Description
Principles of Financial Accounting ACC-101-TE TECEP Test Description This TECEP is an introduction to the field of financial accounting. It covers the accounting cycle, merchandising concerns, and financial
More informationAccounting 1010 Sample Exam 3 Chapters 7, 8, and 9
Accounting 1010 Sample Exam 3 Chapters 7, 8, and 9 Name Multiple Choice: Circle the letter corresponding to the best answer for each question. Only circle one answer per question. Problems: Show ALL work
More informationAccruals and prepayments
Accruals and prepayments Introduction These are adjustments which need to be carried out before the financial statements can be produced. The adjustments are necessary as accounts are prepared in accordance
More informationResidual carrying amounts and expected useful lives are reviewed at each reporting date and adjusted if necessary.
87 Accounting Policies Intangible assets a) Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of identifiable net assets and liabilities of the acquired company
More informationSection A: Questions On Fill In The Blanks
Section A : 26 FILL IN THE BLANK Section B : 10 TRUE OR FALSE QUESTIONS Section C : 11 Multiple Choice Questions Section A: Questions Fill In The Blanks the right column please insert the items from which
More informationAccounting 303 Final Examination. Part I True-False (1 point each, 12 points total) If true, circle "T" on the answer sheet, if false, circle "F".
Accounting 303 Final Examination Name Part I True-False (1 point each, 12 points total) If true, circle "T" on the answer sheet, if false, circle "F". 1. The Financial Accounting Standards Board (FASB)
More information2-8. Identify whether each of the following items increases or decreases cash flow:
Problems 2-8. Identify whether each of the following items increases or decreases cash flow: Increase in accounts receivable Increase in notes payable Depreciation expense Increase in investments Decrease
More information2. The balance in a deferred revenue account represents an amount that is Earned Collected a. Yes Yes b. Yes No c. No Yes d. No No.
Multiple choice (36%, 2%each): 1. Failure to record the expired amount of prepaid rent expense would not a. understate expense. b. overstate net income. c. overstate owners' equity. d. understate liabilities.
More informationAnadolu Hayat Emeklilik Anonim Şirketi Consolidated Balance Sheet As At 31 December 2015 (Currency: Turkish Lira (TRY))
Consolidated Balance Sheet As At ASSETS I- Current Assets A- Cash and Cash Equivalents 14 302,999,458 216,428,429 1- Cash 14 3,385 27,952 2- Cheques Received 3- Banks 14 145,598,543 87,301,020 4- Cheques
More informationCHAPTER 22. Accounting Changes and Error Analysis 4, 6, 7, 8, 9, 12, 13, 15
CHAPTER 22 Accounting Changes and Error Analysis ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. Differences between change in principle, change in estimate, change in entity, errors. Questions 4,
More informationTest 3 Review. Student:
Test 3 Review Student: 1. A credit sale of $2,500 to a customer would result in: A. A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts
More informationNational Quali cations EXEMPLAR PAPER ONLY
H National Qualications EXEMPLAR PAPER ONLY EP01/H/01 Accounting Date Not applicable Duration 2 hours Total s 100 SECTION 1 40 s Attempt this question SECTION 2 60 s Attempt ALL questions You may use a
More informationGlossary of Accounting Terms Peter Baskerville
Glossary of Accounting Terms Peter Baskerville Account for or 'bring to account': An accounting phrase used to describe the recording of a financial transaction that is required under the generally accepted
More informationTOPIC LEARNING OBJECTIVE
Topic Mapping 1 Transaction Analysis Understand the effect of various types of transactions on the accounting equation, accounting journal and accounting ledger. Concepts and Skills Accounting Equation
More information1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is known as a voucher system.
Accounting II True/False Indicate whether the sentence or statement is true or false. 1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is
More informationAM01 Syllabus (2017): Accounting AM SYLLABUS (2017) SYLLABUS
ACCOUNTING AM SYLLABUS (2017) AM01 SYLLABUS 1 Accounting AM01 Syllabus (Available in September) Paper I (3 hrs) + Paper II (3 hrs) Introduction The syllabus builds on the topics set for the SEC Examination
More information國 立 體 育 大 學 100 學 年 度 學 士 班 轉 學 考 試 試 題 休 閒 產 業 經 營 學 系 二 年 級 會 計 學 ( 本 試 題 共 8 頁 )
國 立 體 育 大 學 100 學 年 度 學 士 班 轉 學 考 試 試 題 休 閒 產 業 經 營 學 系 二 年 級 會 計 學 ( 本 試 題 共 8 頁 ) 注 意 : 1. 答 案 一 律 寫 在 答 案 卷 上, 否 則 不 予 計 分 2. 請 核 對 試 卷 准 考 證 號 碼 與 座 位 號 碼 三 者 是 否 相 符 3. 試 卷 彌 封 處 不 得 汚 損 破 壞 4. 行
More informationSTATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS
C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,
More information中 原 大 學 95 學 年 度 轉 學 考 招 生 入 學 考 試
中 原 大 學 95 學 年 度 轉 學 考 招 生 入 學 考 試 7 月 12 日 14:00~15:30 商 學 群 組 二 年 級 科 目 : 會 計 學 ( 共 七 頁 第 一 頁 ) 可 使 用 計 算 機, 惟 僅 限 不 具 可 程 式 及 多 重 記 憶 者 一 MULTIPLE CHOICE QUESTIONS: (50%) 誠 實 是 我 們 珍 視 的 美 德, 我 們 喜
More informationWIPRO DOHA LLC FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2016
WIPRO DOHA LLC FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED MARCH 31, 2016 WIPRO DOHA LLC BALANCE SHEET (Amount in ` except share and per share data, unless otherwise stated) As at March 31, 2016
More informationIn this chapter, we build on the basic knowledge of how businesses
03-Seidman.qxd 5/15/04 11:52 AM Page 41 3 An Introduction to Business Financial Statements In this chapter, we build on the basic knowledge of how businesses are financed by looking at how firms organize
More informationAccounting 201 Comprehensive Practice Exam 2C Page 1
Accounting 201 Comprehensive Practice Exam 2C Page 1 1. A business organized as a corporation a. is not a separate legal entity in most states. b. requires that stockholders be personally liable for the
More informationCENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives
CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation After studying Chapter 1, you will be able to: 1. Define accounting
More informationCHAPTER 10 Financial Statements NOTE
NOTE In practice, accruals accounts and prepayments accounts are implied rather than drawn up. It is common for expense accounts to show simply a balance c/d and a balance b/d. The accrual or prepayment
More informationEXERCISES. The cash from operating activities detail is provided as follows for class discussion:
EXERCISES Ex. 14 1 There were net additions, such as depreciation and amortization of intangible assets of $389 million, to the net loss reported on the income statement to convert the net loss from the
More informationVol. 1, Chapter 7 The Statement of Cash Flows
Vol. 1, Chapter 7 The Statement of Cash Flows Problem 1: Solution Transaction # Identification 1 Operating 2 Investing 3 Noncash transaction 4 Financing 5 Noncash transaction 6 Operating 7 Investing 8
More information6. Show all your workings. icpar
CERTIFIED PUBLIC ACCOUNTANT FOUNDATION LEVEL 1 EXAMINATION F1.3: FINANCIAL ACCOUNTING MONDAY: 10 JUNE 2013 INSTRUCTIONS: 1. Time Allowed: 3 hours 15 minutes (15 minutes reading and 3 hours writing). 2.
More informationACCOUNTING FOR LEASES - COMPARISON OF INDIAN ACCOUNTING STANDARD AND US GAAP
D.S.RAWAT FCA ACCOUNTING FOR LEASES - COMPARISON OF INDIAN ACCOUNTING STANDARD AND US GAAP The comparison of lease accounting as per the Indian GAAP (AS-19) US GAAP SFAS-13 is based on (1) The similarities
More informationLearn Accounting Understand Business: Course Review Answers
Learn Accounting Understand Business: Course Review Answers 1. What type of accounting measures the activity of the company by looking at economic events regardless of when cash transactions occur? A.
More informationBUSINESS TOOLS. Preparing Agricultural Financial Statements. How do financial statements prove useful?
Preparing Agricultural Financial Statements Thoroughly understanding your business financial performance is critical for success in today s increasingly competitive agricultural, forestry and fisheries
More informationAccounting Technician Examination
14 Feature Article: Consolidation Procedures Intra-group Transactions Between Parent and Subsidiary (relevant to ATE Paper 7 Advanced Accounting) Teresa M H Ho Introduction This article describes and illustrates
More informationPreparing Agricultural Financial Statements
Preparing Agricultural Financial Statements Thoroughly understanding your business financial performance is critical for success in today s increasingly competitive agricultural environment. Accurate records
More informationTHE HONG KONG INSTITUTE OF CHARTERED SECRETARIES. Suggested Answers
THE HONG KONG INSTITUTE OF CHARTERED SECRETARIES Suggested Answers Level : Professional Subject : Hong Kong Financial Accounting Diet : December 2006 The suggested answers are published for the purpose
More informationMustafa Khuwaja - CAT Finalist
1 Run through the Flashcards as often as you can during your final revision period. The day before the exam, try to go through the Flashcards again. You will be well on your way to passing your exams.
More informationRicoh Company, Ltd. INTERIM REPORT (Non consolidated. Half year ended September 30, 2000)
Ricoh Company, Ltd. INTERIM REPORT (Non consolidated. Half year ended September 30, 2000) *Date of approval for the financial results for the half year ended September 30, 2000, at the Board of Directors'
More informationFinancial Accounting Study Guide Fall 2013 CH1 & 2 PART VI RATIOS
Financial Accounting Study Guide Fall 2013 CH1 & 2 PART VI RATIOS Name: Selected information from the financial statements of Miller Company for the year ended December 31, 2012, appears below: 2012 Current
More informationACC 120 PRINCIPLES OF FINANCIAL ACCOUNTING
ACC 120 PRINCIPLES OF FINANCIAL ACCOUNTING COURSE DESCRIPTION: Prerequisites ENG 090, and RED 090 or DRE 098; MAT 070 or DMA 010, 020, 030, 040, or satisfactory score on placement test Corequisites: None
More informationANADOLU ANONİM TÜRK SİGORTA ŞİRKETİ DETAILED BALANCE SHEET
ASSETS I- Current Assets Audited Current Period Audited Previous Period A- Cash and Cash Equivalents 14 1.606.048.714 1.153.712.216 1- Cash 14 37.347 49.256 2- Cheques Received 3- Banks 14 1.356.733.446
More informationChapter 6 Statement of Cash Flows
Chapter 6 Statement of Cash Flows The Statement of Cash Flows describes the cash inflows and outflows for the firm based upon three categories of activities. Operating Activities: Generally include transactions
More informationFinancial Statement Analysis!
Financial Statement Analysis! The raw data for investing Aswath Damodaran! 1! Questions we would like answered! Assets Liabilities What are the assets in place? How valuable are these assets? How risky
More informationAccounting, CPT Chapter 6 CA PRATHAP SS
Accounting, CPT Chapter 6 CA PRATHAP SS INTRODUCTION Preparation of Final Accounts is the last phase of the Accounting Process. INTRODUCTION The process of accounting starts from Transaction then entered
More informationJones Sample Accounts Limited. Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements
Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Period of accounts Start date: 1st June 2009 End date: 31st May 2010 Contents of the
More information2 Inventories CHAPTER 2.0 INTRODUCTION 2.1 WHAT IS INVENTORY? LEARNING OUTCOMES
CHAPTER 2 Inventories LEARNING OUTCOMES At the end of this chapter, students should be able to: determine the inventory cost differentiate and calculate inventory using the Periodic and Perpetual systems
More informationCASH FLOW STATEMENT. MODULE - 6A Analysis of Financial Statements. Cash Flow Statement. Notes
MODULE - 6A Cash Flow Statement 30 CASH FLOW STATEMENT In the previous lesson, you have learnt various types of analysis of financial statements and its tools such as comparative statements, common size
More informationAccounting for Changes and Errors
CHAPTER Accounting for Changes and Errors OBJECTIVES After careful study of this chapter, you will be able to: 1. Identify the types of accounting changes. 2. Explain the methods of disclosing an accounting
More informationConsolidated Financial Statements
Consolidated Financial Statements For the year ended February 20, 2016 Nitori Holdings Co., Ltd. Consolidated Balance Sheet Nitori Holdings Co., Ltd. and consolidated subsidiaries As at February 20, 2016
More informationPRINCIPLES OF ACCOUNTING REVISION
PRINCIPLES OF ACCOUNTING REVISION Exam format open book 2 hours No multiple choice question. Question 1 FIFO, LIFO stock valuation (20 marks) Question 2 Depreciation (20 marks) Question 3 Bank reconciliation
More informationJOHNSON GRADUATE SCHOOL OF MANAGEMENT Cornell University
JOHNSON GRADUATE SCHOOL OF MANAGEMENT Cornell University Sample Accounting Exemption Exam Questions 1. On July 1, 20D, Allen Company signed a $50,000, one-year, 10 percent note payable. At due date, June
More informationDr. M.D. Chase Accounting Principles Examination 2J Page 1
Accounting Principles Examination 2J Page 1 Code 1 1. The term "net sales" refers to gross sales revenue reduced by sales discounts and transportation-in. 2. The cost of goods available for sale in a given
More informationInvestments Advance to subsidiary company 81,000
EXERCISE 7-3 (10 15 minutes) Current assets Accounts receivable Customers Accounts (of which accounts in the amount of $40,000 have been pledged as security for a bank loan) $79,000 Installment accounts
More information> DO IT! Chapter 13. Classification of Cash Flows. Cash from Operating Activities D-1. Solution. Action Plan
Chapter 13 > DO IT! Classification of Cash Flows Identify the three types of activities used to report all cash inflows and outflows. Report as operating activities the cash effects of transactions that
More informationOperating Working Capital Drills
Operating Working Capital Drills Operating Working Capital Drills 1. Use IBM s balance sheet below to calculate 2010 and 2011 working capital and operating working capital. Your VP has told you to consider
More informationSample Test for entrance into Acct 3110 and Acct 3310
Sample Test for entrance into Acct 3110 and Acct 3310 1. Which of the following financial statements could properly have the following in the date line: For the Year Ended December 31, 2010"? a. Balance
More informationDetailed competency map: Knowledge requirements. (AAT examination)
Detailed competency map: Knowledge requirements (AAT examination) Fields of competency The items listed are shown with an indicator of the minimum acceptable level of competency, based on a three-point
More information! "#$ %&!& "& ' - 3+4 &*!&-.,,5///2!(.//+ & $!- )!* & % +, -).//0)& 7+00///2 *&&.4 &*!&- 7.00///2 )!*.//+ 8 -!% %& "#$ ) &!&.
! "#!""#$%$#$#$"& $'"()*+,$-).,/ 012! "#$ %&!& "& '!(&)!*&%+,-).//0 -#$#3-4' &,'1$1# $!-!(.//0)& +01+///2 *&& - 3+4 &*!&-.,,5///2!(.//+ &!(!-6%(!(.//.$(!(.//0)& 01,///2 //+2% &*!&- 5,0///2 //32%!(.//+
More informationNorth Carolina s Reference to the Internal Revenue Code Updated - Impact on 2015 North Carolina Corporate and Individual income Tax Returns
June 3 2016 North Carolina s Reference to the Internal Revenue Code Updated - Impact on 2015 North Carolina Corporate and Individual income Tax Returns Governor McCrory signed into law Session Law 2016-6
More informationBUSINESS ACCOUNTS. sample documents. sourced from www.osbornebooks.co.uk
BUSINESS ACCOUNTS sample documents sourced from www.osbornebooks.co.uk Sample documents document page invoice 3 statement 4 double-entry accounts 5 cash book 6 petty cash book 7 extended trial balance
More informationThe Application of International Accounting Standards in the Financial Statements of Tearfund Partners
The Application of International Accounting Standards in the Financial Statements of Tearfund Partners Context: International Accounting Standards (IAS) have been developed primarily to bring consistency
More informationDTS CORPORATION and Consolidated Subsidiaries. Unaudited Quarterly Consolidated Financial Statements for the Three Months Ended June 30, 2008
DTS CORPORATION and Consolidated Subsidiaries Unaudited Quarterly Consolidated Financial Statements for the Three Months Ended June 30, 2008 DTS CORPORATION and Consolidated Subsidiaries Quarterly Consolidated
More informationUniversity of Waterloo Final Examination. Term: Fall Year: 2005. Core Concepts of Accounting Information
University of Waterloo Final Examination Term: Fall Year: 2005 Student Name Solution UW Student ID Number Course Abbreviation and Number AFM 101 Course Title Core Concepts of Accounting Information Section(s)
More informationHow To Calculate A Trial Balance For A Company
THE BASIC MODEL The accounting information system is designed to collect and organize data into information that is useful for stakeholders. The Accounting Equation The basic accounting equation is what
More informationU.S. Income Tax Return for an S Corporation
Form 1120S U.S. Income Tax Return for an S Corporation Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation. Information about Form 1120S and
More informationReview of Accounting Principles
Appendix A Review of Accounting Principles Appendix A is a review of basic accounting principles and procedures. Standard accounting procedures are based on the double-entry system. This means that each
More informationScore: Pass/Fail. Purchase Returns and Allowances. Sales Returns and Allowances. Journal entries The accounting equation Treasury Stock
Walsh College Fundamental Financial Accounting Student Name: Practice Evaluation Exam Phone/Email: Date: This evaluation exam will be used to determine your knowledge of Financial Accounting and to assist
More informationHARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2013
HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2013 HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS
More informationANADOLU ANONİM TÜRK SİGORTA ŞİRKETİ DETAILED BALANCE SHEET. ASSETS Unaudited Current Audited Previous Dipnot I- Current Assets
ASSETS Unaudited Current Audited Previous Dipnot I- Current Assets A- Cash and Cash Equivalents 14 2.364.314.943 2.304.904.212 1- Cash 14 38.784 18.864 2- Cheques Received 3- Banks 14 1.961.058.269 1.937.834.876
More informationChapter 3 the balance sheet and the statement of changes in stockholder. equity
Full Picture for Intermediate Accounting (I) Chapter 3 the balance sheet ASSET LIABILITY Current Chapter 6 cash and receivables Chapter 7/8 inventories Chapter 12 current liabilities and contingencies
More informationPRINCIPLES FOR PRODUCING AND SUBMITTING REPORTS
December 2014 PRINCIPLES FOR PRODUCING AND SUBMITTING REPORTS (1) The balance sheet and income statement are in euros, rounded up to integers. Amounts recorded in foreign currencies must be converted into
More informationPerpetual vs. Periodic Inventory Accounting
Chapter 6 INVENTORY In the balance sheet of merchandising and manufacturing companies, inventory is frequently the most significant current asset. In the income statement, inventory is vital in determining
More informationSTATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION. BALANCE SHEET As of
STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BALANCE SHEET As of ASSETS CURRENT ASSETS Cash and Cash Equivalents Cash - Restricted Accounts Receivable - Trade Accounts Receivable
More informationAccounting II Second Semester Final
Name: Class: Date: Accounting II Second Semester Final Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Profit is the difference between:
More informationChapter 8 Accounting for Receivables
Chapter 8 Accounting for Receivables Accounts Receivable Accounts Receivables are current assets. They are usually expected to be collected within 30 days. Allowance Method and Bad Debt Expense 2 methods:
More informationSection A Fundamentals of Accountancy,Chapter 4 CA (Dr.) Akash Gupta FCA, M.COM, PHD
Section A Fundamentals of Accountancy,Chapter 4 CA (Dr.) Akash Gupta FCA, M.COM, PHD Meaning of Inventory Types of Inventories Inventory valuation Basis of Inventory Valuation Valuation Inventory Techniques
More informationACCOUNTING POLICY 1.1 FINANCIAL REPORTING. Policy Statement. Definitions. Area covered. This Policy is University-wide.
POLICY Area covered ACCOUNTING POLICY This Policy is University-wide Approval date 5 May 2016 Policy Statement Intent Scope Effective date 5 May 2016 Next review date 5 May 2019 To establish decisions,
More informationACCOUNTING 105 CONCEPTS REVIEW
ACCOUNTING 105 CONCEPTS REVIEW A note from the tutors: This handout is designed to help you review important information as you study for your cumulative final exam. While it does cover many important
More informationIV. Test Questions and Solutions. Chapter 1. Multiple Choice
IV. Test Questions and Solutions Chapter 1 Multiple Choice 1. What basic financial statements can be found in a corporate annual report? a. Balance sheet, auditor's report and income statement. b. Balance
More informationGold Run Snowmobile. Adjusting Entries and Closing Entries For The Quarter Ended December 31. Final Project Evaluation. 5 th Edition.
Gold Run Snowmobile 5 th Edition Adjusting Entries and Closing Entries For The Quarter Ended December 31 and the Final Project Evaluation Page 1 ADJUSTING ENTRIES FOR THE QUARTER Using a copy of the December
More informationGlossary of Accounting Terms
Glossary of Accounting Terms Account: A record that holds the results of financial transactions. Accountant's Equation: The equation that is the basis of the Balance Sheet: Assets = Liabilities + Owners'
More informationGBA 521 Midterm Review Dr. Markelevich
GBA 521 Midterm Review Dr. Markelevich Multiple Choice (3 points for each question) Identify the letter of the choice that best completes the statement or answers the question. Wynn Corp. Wynn Corp. reported
More informationSummary of Financial Report for the FY ending March 2015 (Non-Consolidated)
Summary of Financial Report for the FY ending March 2015 (Non-Consolidated) April 30, 2015 Listed Company Name: Japan Tissue Engineering Co., Ltd. Listed Securities Exchange: JQ Stock Code: 7774 URL http://www.jpte.co.jp
More informationREVIEW FOR EXAM NO. 3, ACCT-2301 (SAC) (Chapters 7-9)
REVIEW FOR EXAM NO. 3, ACCT-2301 (SAC) (Chapters 7-9) A. Chapter 7. 1. Internal Control Objectives. a. Safeguards to protect assets. b. Procedures to insure reliable financial reports. c. Methods to insure
More informationThe statements are presented in pounds sterling and have been prepared under IFRS using the historical cost convention.
Note 1 to the financial information Basis of accounting ITE Group Plc is a UK listed company and together with its subsidiary operations is hereafter referred to as the Company. The Company is required
More informationANADOLU ANONİM TÜRK SİGORTA ŞİRKETİ DETAILED BALANCE SHEET ASSETS
ASSETS ANADOLU ANONİM TÜRK SİGORTA ŞİRKETİ I- Current Assets Audited Current Audited Previous Period Period Notes 31/12/2015 31/12/2014 A- Cash and Cash Equivalents 14 2.304.904.212 1.606.048.714 1- Cash
More information