the Sun United Way (VSUW) is used to guarantee that their organization will perform at their most likely current ratio‚ long-term solvency ratio‚ contribution ratio‚ and general and management/expense ratio (Goetsch & Davis‚ 2010). The current ratio will enable VSUW to easily see their current expenses that may be aquired and make sure that the organization has enough resources to pay all of their current obligations. VSUW will be able to see if there is ever a need to liquefy their assets to
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Caz Polymedica(A) Q: Explain difference between an asset and an expense A: Assets are resources controlled by the entity as a result of past events and from which future economic benefits are expected into next accounting periods. Expenses are costs related to running the business‚ in order to earn revenues. An "expense" is that economic portion of an asset that has been used up within the accounting period. Q: Explain the role of advertising in the company’s customer acquisition strategy
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that comes into the business it is also known as income. Net profit is the amount of money that is left when the operating expenses are deducted from the gross profit. The difference between gross profit and net profit is the difference between the total revenue and the total cost which is called gross profit also gross profit only arises when after deducting all the expenses. For example Mr Brown buys his goods for £10‚000 and paid £200 on account and £100 as octroi duty (meaning that a tax has
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would bring you down to $494/week and $19‚760/year. Even if your hired help does not work as quickly and efficiently as you and despite the fact that you would have to train them‚ any additional income that is made is purely profit to you‚ since your expenses are coved already by charging higher prices for your product. It seems that you could make these extra items at no additional cost by using your clean scrap. This would save on
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the adjustments are recorded and posted at December 31‚ determine the balances in the Supplies and Supplies Expense accounts. Supplies ; Supplies ExpenseAnswer | | | | | Selected Answer: | [None Given] | Correct Answer: | $1‚300; $4‚500 | Response Feedback: | $1‚800 (Supplies at Jan. 1) + $4‚000 (Amount purchased) - $1‚300 (Supplies at Dec. 31) = $4‚500 (Supplies Expense) | | | | | * Question 2 0 out of 10 points | | | Which of the following is the attribute
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if the problem only has ’Expenses’ as a descriptor‚ then don’t use ’Rent Expense’ even if the company pays rent). Similarly‚ when you are dealing with transactions in the ‘real world’‚ only use descriptions in the company’s ‘Chart of Accounts’ when making journal entries. 4. In this problem‚ there is no depreciation expense on the Equipment although there should be. We will cover depreciation expense in a later chapter. 5. Also‚ there is no supplies expense although there should be
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Depreciation:- accumulated depreciation is an asset‚ so it will increase with a debit. Why adjusting entries are prepared give some reasons? Answer: Adjusting entries have to be made because a company’s assets‚ expenses‚ and liabilities never stay the same from one accounting period to another. I will try to give you at least two examples of why adjusting entries must be made. Example 1. A customer purchases items on account for the amount of $500. When the sale is first made the company
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a business reason and possible client error reason were provided. The following accounts provide the possibility for audit risk: Cash- Business reason: Acquired a loan during the period to obtain cash; Client error: Not properly recording all expenses paid in cash Accounts Receivable- Business reason: Increase in sales; Client error: recording sales in the wrong period (cutoff error) Allowance for Bad debts- Business reason: changed percentage of sales used to record; Client error- Used incorrect
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CHAPTER 1 OVERVIEW OF FINANCIAL REPORTING‚ FINANCIAL STATEMENT ANALYSIS‚ AND VALUATION Solutions to Questions‚ Exercises‚ and Problems‚ and Teaching Notes to Cases 1. Value Chain Analysis Applied to the Timber and Timber Products Industry. Exhibit 1.A below contains a depiction of the value chain. The links in the value chain are as follows: 1. Timber Tracts: Plant and maintain timber tracts (Weyerhaeuser) 2. Logging: Harvests timber (Weyerhaeuser) a. Sawmills:
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$15‚000 of water expense to the owners as agreed. Dava holdback the money because they claim that the owners should reimburse the developer the hydro expenses paid on the common area before the common accounts were handed over to the strata corporations. e. Share of water and sewer expenses – The property manager reported that EPS1808 Building F has reimbursed the other 2 strata corporations on its share of water and sewer consumption billed by the City. The sharing of the expenses is calculated in
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