bookkeepers use different names for the same thing? (6 marks) Accumulated profits is profits that are not paid as dividend but is transfered over to the accounts for the next year. Also can be used to reinvest in the core of the business to help pay off debts or to purchase a capital asset. The reasons why accountants and bookkeepers use different names for the same thing is because bookkeepers are the people who record the financial transactions in a business in the form‚ of journals otherwise known as
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These control weaknesses are detailed below along with the resulting potential for irregularities in the system. Failure to file cash invoices in numeric or date order makes it easy to “misfile” them and they could potentially be lost leading to bad debt write off. Failure to use a carbon copy process‚ if the invoices are raised manually‚ also exposes the council to risk of error because there is no guarantee the copy is an exact duplicate. Failure to provide a receipt on immediate collection of
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gain. *Income from stock is not taxed. Capital Contributions aren’t taxed. §385: Thin Capitalization‚ corp debt vs. equity. (No Regulations) §165: Loss can be taken for worthlessness. *Business bad debts=ordinary losses‚ non-business bad debt=short-term cap loss. *Business bad debt can NOL or partial worthless‚ non-business cannot. *Nonbusiness bad debt=noncorp‚ but all business bad debts of corp qualify for business. §1244: Permits ordinary loss on worthless stock of small business corp. (5
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Balance from her accounts on 30 April 2009. Rent General expenses Insurance Salaries Electricity Capital Motor expenses Bad debts Drawings Debtors Creditors Bank Stock 10% Loan Loan interest Carriage outwards Commission received Purchases Sales Purchases returns Sales returns Discounts allowed Discounts received Provision for doubtful debts Equipment Provision for depreciation of equipment Motor vehicles Provision for depreciation of motor vehicles Dr £ 4 000
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parameters pertinent to credit risk management as it affects banks’ financial performance. Such parameters covered in the study were; default rate‚ bad debts costs and cost per loan asset. Financial reports of 10 banks was used to analyze profit ability ratio for seven years (2000-2006) comparing the profitability ratio to default rate‚ cost of debt collection an cost per loan asset which was presented in descriptive‚ regression and correlation was used to analyze the data. The study revealed that
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A Lifetime of Student Debt? Not Likely. Robin Wilson had quite a compelling article‚ showing the potential contrast with the debt vs. the quality of life and stability a degree can provide. Wilson overall points show that the American dream we are all striving for has changed. She is able to demonstrate this through the use of several anecdotes. Wilson interviews with various professionals to see how they use these degrees to better themselves. In doing so she highlights various pros and cons
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Charity Care and Bad Debit Hospitals usually count bad debit in the non-compensation costs but there is a question of whether or not it should be included. There is some gray area when it comes to the difference between bad debit and charity when it comes to the Health care environment. Bad debit that won are bills that people don ’t pay for whatever reason and there is a difference between those who won ’t pay and the ones who just can ’t. For a health care business‚ bad debit is not something
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Choice Between Debt and Equity Contracts • How Moral Hazard Influences Financial Structure in Debt Markets 1 Basic Facts About Financial Structure Throughout the World • The chart on the next slide shows how non-financial business get external funding in the U.S.‚ Germany‚ Japan‚ and Canada. • Notice that‚ although many aspects of these countries are quite different‚ the sources of financing are somewhat consistent‚ with the U.S. being different in its focus on debt. Sources of
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000 Allowance for bad debts – P40‚000 Additional information: Cash sales of the company represents 10% of gross sales. 90% of the credit sales customers do not take advantage of the 2/10‚n/30 terms. It is expected that cash discount of P6‚000 will be taken on accounts receivable outstanding at December 31‚ 2010. Sales returns in 2010 amounted to P400‚000. All returns were from charge sales. During 2010‚ accounts totaling to P44‚000 were written off as uncollectible‚ bad debt recoveries during
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& Clifford W. Smith‚ Jr) The basis of my subject “Bad debt expense estimation model” stems from account receivable. Account receivable is the term used by companies to describe money owed to them by clients or customers for goods and services provided. Bad debt expense is that portion of account receivables that will not be collected. Therefore‚ without any receivables a company will not have bad debts‚ thus no need to estimate any bad debt expense. Business to business transactions are mostly
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