Classification of Taxes Classification of taxes 1. As to subject matter or object A. personal‚ poll or capitation- tax of a fixed amount on individuals residing within a specified territory‚ without regard to their property‚ occupation or business. Ex. Community tax (basic) B. property- imposed on property‚ real or personal‚ in proportion to its value‚ or in accordance with some reasonable method or apportionment. Ex. Real estate Tax C. Excise- imposed upon the performance of an act‚ the
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CHAPTER 9 Ratio Analysis Introduction The analysis of the financial statements and interpretations of financial results of a particular period of operations with the help of ’ratio’ is termed as "ratio analysis." Ratio analysis used to determine the financial soundness of a business concern. Alexander Wall designed a system of ratio analysis and presented it in useful form in the year 1909. Meaning and Definition The term ’ratio’ refers to the mathematical relationship between any two inter-related
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in the business are called ___. 7 When someone other than the owner has supplied some of the resources the amount owing for these are . 8 ASSETS = CAPITAL + LIABILITIES This is the Equation. ACCOUNTING ASSETS BOOK-KEEPING CAPITAL CREDIT CREDITOR DEBT DEBTOR LIABILITIES TRANSACTION Exercises 1.1 You are to complete the gaps in the following table: Assets Liabilities Capital £ £ £ (a) 12‚500 1‚800 ? (b) 28‚000 4‚900 ? (c) 16
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exercised Banker’s General Lien on the jewels for the overdue/recalled loan account of ‘X’. Whether the Banker is the right? Answer: a) loan is closed and hence the Jewels are free‚ b) Jewels are received in the capacity of a Banker (Creditor-Debtor) c) There are no contrary instructions Hence‚ Banker can exercise Banker’s General Line Example – 2: ‘Y’ took a Demand Loan from the Bank. The loan is guaranteed by ‘X’. The loan became overdue and is recalled. Today ‘X’ came to the Bank
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the code of Civil Procedure‚ 1908. When the debtor failed to pay the debt to his creditor‚ the latter may approach court for the issue of garnishee order on the banker of the debtor. 2 Stages of issue: Order Nisi – It is issued first‚ directing the bank to stop payment in account of the debtor. Order Nisi requires the banker to explain as to why the funds of the depositor should not be attached towards satisfaction of the dues of the creditor. On receipt of Order Nisi‚ the bank is bound
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with a new strategy and a new name (Enron Creditors Recovery Corp). Now its sole mission is to reorganize and liquidate the remaining operations and assets of Enron. ECRC has successfully undertaken legal action to hold responsible the major financial institutions that it contends assisted the pre-bankruptcy Enron deceive the public. Once ECRC has completed all outstanding litigation and monetized all assets‚ it will make a final distribution to creditors. After that‚ the company will cease to exist
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and taxCapital Employed×100 73960149160×100=49.58% Liquidity Current Ratio Current AssetsCurrent Liabilities 7016026000=2.69 Acid Test Ratio/ Liquidity Ratio Current Assets-stockCurrent liabilties 70160-24420026000=1.75 Efficiency Debtors payment period CreditorsCredit Purchases×365 41000444000×365=33.7 (34 days) Credit payment period CreditorsCredit Purchases×365 15500199800×365=28.3 (28 Days) Rate of stock turnover Average stockCost of goods sold× 365 12000244200×365=17.93
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Cash Budgets These are used by management as a guide to planning‚ control and decision-making. • So we can see when commitments are due so the business can make payments on time‚ maintaining a good reputation and being able to obtain credit • To show when the business has excess funds which should be invested to earn interest in either the short-term money market‚ in a fixed term deposit‚ in government stock or in an investment account (rather than a cheque account) • To control by
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Acknowledgements In the name of Allah‚ the Beneficent‚ the Merciful. First of all we are very thank full to Allah who provide us knowledge‚ energy and skills to avail opportunities and increase our knowledge and experience by completing this assignment. For the successful completion of assignment we are thankful to organization’s staff‚ who given us in-depth knowledge of subject and equipped us with current market trends. We were not able to accomplish this task without the help of class teacher
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FUNDS FLOW STATEMENT Meaning The term “Flow” means change and therefore‚ the term “Flow of Funds” means “Change in Funds” or “Change in Working Capital “. In other works‚ any increase or decrease in working capital means “Flow of Funds”. There are two concepts of working capital – gross concept and net concept. • Gross working capital refers to the firm’s investment in current assets • Net working capital means excess of current assets over current liabilities. In business several
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