P5 A profit and loss account is what a business uses to keep track of their finances throughout the previous twelve months. Keeping profit and loss accounts is very important because it helps the business keep track of what they are spending. It is important that a business keeps track of their finances so that they know how much money they expect to come in to the business and if they need to prepare for a drop or rise in profits. Keeping profit and loss accounts allows the business to see
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Preparing Entries and Statements QS 4-5A The following unadjusted trial balance is for Adams Construction Co. as of the end of its 2005 fiscal year. The June 30‚ 2004‚ credit balance of the owner’s capital account was $52‚660‚ and the owner invested $25‚000 cash in the company during the 2005 fiscal year. [pic] Prepare a 10-column work sheet for fiscal year 2005‚ starting with the unadjusted trial balance and including adjustments based on these additional facts: a. The supplies
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Lessees Posted on March 16‚ 2012 by James in Accounting‚ CFA Exam‚ CFA Exam Level 2 The table below summarizes the effects of operating and capital leases on selected financial reporting items for lessees. ITEM OPERATING LEASE CAPITAL LEASE Balance Sheet No impact. Leased asset and lease liability are created. Income Statement Rent expense occurs over the life of the least; this may be a constant value. Interest and depreciation expenses are recognized. In the initial years expenses will be
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CHAPTER 2 FINANCIAL STATEMENTS‚ CASH FLOW‚ AND TAXES True/False Easy: (2.1) Annual report F K Answer: a EASY 1. The annual report contains four basic financial statements: the income statement‚ balance sheet‚ statement of cash flows‚ and statement of stockholders’ equity. a. True b. False (2.1) Annual report and expectations F K Answer: a EASY 2. The primary reason the annual report is important in finance
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of cash flow‚ and the balance sheet. It is very important that when doing a financial statement that you make sure all your numbers and up or just one mistake can mess up everything. Now to describe the purpose of each of the four pieces of the financial statement I will start with the balance sheet. The balance sheet is the statement that lists the assets of a business and the corresponding claims such as liabilities and equity on those assets. I feel that the balance is pretty much a outline
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Make accounting treatment of the revaluation of assets and liabilities and distribute the profit and loss on revaluation among the old partners. Make accounting treatment of unrecorded assets and liabilities Prepare capital Accounts‚ Cash A/c and Balance Sheet of the New firm Adjust the Partners‘ Capital Accounts Salient Points:1. Goodwill is the monetary value of business reputation. It is an intangible asset. 2. Goodwill may be of two types: a. Purchased goodwill b. Non-purchased goodwill 3. When
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been journalized and posted‚ all temporary accounts in the ledger should have zero balances. 11. Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure. 12. Closing the dividends account to Retained Earnings is not necessary if net income is greater than dividends during the period. 13. The dividends account is a permanent account whose balance is carried forward to the next accounting period. 14. Closing entries
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or nature of the industry they are in. John Deere uses LIFE as their cost flow assumption. d) The balance sheets of the two companies would differ in the LIFO reserve John Deere must have on the balance sheet. For John Deere‚ they utilize LIFO‚ which “stores” the value of the product in inventory more than FIFO. John Deere can keep their inventory stocked with lower priced goods on the balance sheet‚ when in reality they are moving all the same inventory. If prices are decreasing
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the computer scoring sheet using pencils. 3. This is a CLOSED BOOK test. You are not to bring in any material other than your matriculation card‚ pens‚ pencils‚ erasers and University-approved calculators. 4. Write your name and student matriculation number on both this question paper and the computer scoring sheet. Also write your tutorial group number on the top righthand corner of both papers. 5. Submit both this paper and the computer scoring sheet at the end of the test
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MEMORANDUM SUBJECT: Blockbuster/Netflix Case Analysis Introduction In this memorandum‚ I will analyze the competitive environment that Blockbuster and Netflix faced‚ state the key income statement and balance sheet accounts for each firm and use ratios (including DuPont model) to draw comparisons between the two firms in 2008. Competitive Environment Blockbuster is an American-based chain of VHS‚ DVD‚ Blu-Ray‚ and video game rental store that has over 5
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