accounting process. 1. Identifying the financial transaction a business may perform several transactions. Of which‚ only financial transactions are recorded in accounts. In the first step of the accounting process‚ therefore‚ financial transactions are identified. Financial transactions are those which are expressed in monetary terms. 2. Recording of Financial Transactions In the second step of accounting process‚ all financial transactions performed by the business are systematically recorded
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will discuss a financial statement that reports the assets‚ liabilities‚ and owners equity on January1‚ 2012 called the balance sheet. The report the reader will see below is a current balance sheet for a company called Custom Building that I personally work with. Working one on one with the owner has offered quite a bit of experience in the accounting world. The reader will be able to view the balance sheet below‚ following the explanation of the balance sheet for Custom Building discussed in full
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| Electricity Bill – paid on May 30‚ 2011 | 8‚500 | Land | 15‚000 | Depreciation Expense | 31‚750 | | | Required Prepare a fully classified vertical format Balance Sheet for Nguyen Bich Fitness Club as at June 30‚ 2011 EXERCISE 2. The following are account balances of Brickwork as | | | | at 31 December 2010: | | | | | | | | | | | | | | Account | Amount ($) | | | | | | Plant & machinery | 25‚000 | | | | | | Accounts receivable |
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Example Company Balance Sheet December 31‚ 2011 ASSETS LIABILITIES Current Assets Current Liabilities Cash $ 2‚100 Notes Payable $ 5‚000 Petty Cash 100 Accounts Payable 35‚900 Temporary Investments 10‚000 Wages Payable 8‚500 Accounts Receivable - net 40‚500 Interest Payable 2‚900 Inventory 31‚000 Taxes Payable 6‚100 Supplies 3‚800 Warranty Liability 1‚100 Prepaid Insurance 1‚500 Unearned Revenues 1‚500 Total Current
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Abstract This report will analyse Greggs’ 2010 annual report on the purpose of evaluating the company’s current operating condition and providing suggestions of improvement to the company’s management team. According to ASB’S Statement of Principles for Financial Reporting‚ the selected information will be provided to the following users: shareholders‚ loan creditor group‚ analyst-adviser group‚ employees‚ customers‚ suppliers‚ government and the public. Then‚ based on the key ratio calculations
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Merck Consolidated Balance Sheet | | | | | | € million | ------------------------------------------------- Note | ------------------------------------------------- Dec. 31‚ 2012 | ------------------------------------------------- Dec. 31‚ 2011 | ------------------------------------------------- Jan. 1‚ 2011 | 1 | Previous year’s figures have been adjusted‚ see Note [5] | | Current assets | ------------------------------------------------- | -------------------------------------------------
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A balance sheet‚ like a photo‚ provides a financial picture of a company on a given day and time. It categorizes all of a company’s resources as assets‚ all of its debts as liabilities‚ and all of the owner’s investments as equity. A company uses its assets‚ such as accounts receivable‚ inventory‚ and equipment‚ for manufacturing or purchasing products for sale or to provide a service. A company’s assets are financed by its liabilities (debt) and the owner’s equity (net worth). On a balance sheet
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A balance sheet is a financial statement that reports the assets‚ which are resources owned by a business‚ liabilities‚ and stockholders’ equity at a specific date. Examples of assets would be computers‚ delivery trucks‚ furniture‚ and buildings. A balance sheet has two categories: Assets‚ liabilities‚ and stockholders’ equity. Liabilities are the debts and obligations of a business. Liabilities represent c claims of creditors on the assets of business. Examples of liabilities would be notes
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COURSE 2 - The Balance Sheet The balance sheet (also called statement of financial position) reports the financial position of the business at a point in time. It does so by listing the categories and amounts of assets‚ liabilities and equity on a specific date‚ in a format that proves the fundamental accounting equation. ASSETS = EQUITY + LIABILITIES or ASSETS – LIABILITIES = EQUITY Formats of presentation Regardless of
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The balance sheet‚ income statement and cash flow statement are closely related. Basically‚ a balance sheet describes a company’s assets‚ liabilities and stockholder’s equity in a specific period of time. An income statement mainly shows the net profits or loss of a company. The purpose of the income statement is to show stockholders and investors whether the company earned or lost money. A cash flow statement explains cash inflows and outflows. Each financial statement reveals a part of a company’s
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