. Ques.1(b)- What is a Balance Sheet ? How does a Funds Flow Statement differ from a Balance Sheet ? Enumerate the items which are usually shown in a Balance Sheet and a Funds Flow Statement Ans- In financial accounting‚ a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship‚ a business partnership‚ a corporation or other business organization‚ such as an LLC or an LLP. Assets‚ liabilities and ownership equity are listed as of a specific
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loss – An adjustment to balance sheet Adjustment to Profit and Loss • Any amount of expenses outstanding at the end of the year should be added to the total amount paid. – Eg. If total rent paid for the year is $10000 and $2000 is still outstanding at the end of the year then in order to reflect the total amount used up (incurred) for the period then the $2000 must be added to the $10000 in the profit and loss account. (The Accrual Concept) Adjustment to Balance Sheet • An expense outstanding
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prepared using the indirect method (the method used by most companies) the differences in a company’s balance sheet accounts will provide much of the needed information. For example‚ if the statement of cash flows is for the year 2012‚ the balance sheet accounts at December 31‚ 2012 will be compared to the balance sheet accounts at December 31‚ 2011. The changes—or differences—in these account balances will likely be entered in one of the sections of the statement of cash flows. Shown below is
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statement The management of company can control the financial of company through financial statements because it gives detail in all kind of financial record to management. There are three financial statements (i.e. Profit and loss statement‚ balance sheet‚ and cash flow statement). Financial statements should be understandable‚ relevant‚ reliable and comparable. Profit and loss statement (income statement): it reports all incomes‚ expenses in order to calculate the profit of company in the period
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TASK THREE BALANCE SHEET The accounting balance sheet is one of the major financial statements used by accountants and business owners. (The other major financial statements are the income statement‚ statement of cash flows‚ and statement of stockholders’ equity) The balance sheet is also referred to as the statement of financial position. The balance sheet presents a company’s financial position at the end of a specified date. Some describe the balance sheet as a "snapshot" of the company’s
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parcel cost the company $20‚000 in 1956 and in 2006 a two-acre parcel adjacent to the original parcel is purchased for a cost of $800‚000‚ the accountant will add the $800‚000 to the land account and will report the land account’s balance of $820‚000 on the company’s balance sheet. To say that the purchasing power of the dollar has not changed significantly from 1956 to 2006 is quite a stretch. However‚ the assumption is that the purchasing power of the dollar has not changed. Part of the monetary unit
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Notes Receivable - An asset representing the right to receive the principal amount contained in a written promissory note. Principal that is to be received within one year of the balance sheet date is reported as a current asset. Any portion of the notes receivable that is not due within one year of the balance sheet date is reported as a long term asset. Accounts Receivable - A current asset resulting from selling goods or services on credit (on account). Allowance for Bad Debts - A valuation
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Ch. 5 | Balance of Payments and International Economic Linkages Balance of payments - accounting statement of the international transactions of one nation over a specific period of time (transactions between US residents and residents of all other countries during that year). Divided in different components: Current Account - purchases and sales of goods and services Financial Account - capital transactions Reserves Account - changes in official reserves Debit entry - purchase of domestic
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THE BALANCE SHEET POCKETBOOK By Anne Hawkins and Clive Turner Drawings by Phil Hailstone “A uniquely accessible guide - if you only read one book on finance‚ read this!” Peter Colley‚ Director of Finance and Membership Services‚ RAC Motoring Services Ltd “The authors’ wealth of practical experience and understanding of the line manager’s perspective is fully reflected in this clear and readable book.” Ray Jennings‚ Human Resources Director‚ Dowty Aerospace CONTENTS INTRODUCTION 1 THE BALANCE
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4 Checkpoint – Part 1 (5 points) The following are common categories on a classified Balance Sheet: Current Assets Long-term Investments Plant Assets Intangible Assets Current Liabilities Long-term Liabilities For each of the following items‚ select a category from above that identifies the Balance Sheet category where the item typically would appear. Category on Balance Sheet Account Title Long-term Investments Notes Receivable Current Assets Merchandise Inventory
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