Accounts receivable is a legally enforceable claim for payment from a business to its customer/clients for goods supplied and/or services rendered in execution of the customer’s order. These are generally in the form of invoices raised by a business and delivered to the customer for payment within an agreed time frame. Accounts receivable is shown in a balance sheet as an asset. It is one of a series of accounting transactions dealing with the billing of a customer for goods and services that the
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Question 3-3 If a “typical” firm reports $20 million of retained earnings on its balance sheet‚ could its directors declare a $20 million cash dividend without having any qualms about what they were doing? Explain your answer. Its directors could declare a $20 million cash dividend without having any qualms about what they were doing‚ because retained earnings may not held as cash. Retained earnings represent the cumulative total of all earnings kept by the company during its life. Therefore‚ $20
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EXAMPLES OF ACCOUNTS FALLING UNDER EACH ACCOUNTING EQUATION ELEMENT: Current Assets Cash - A current asset account which includes currency‚ coins‚ checking accounts‚ and undeposited checks received from customers. The amounts must be unrestricted. (Restricted cash should be recorded in a different account.) Petty Cash Fund - A current asset account that represents an amount of cash for making small disbursements for postage due‚ supplies‚ etc. Notes Receivable - An asset representing the
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Classification of Ratios Ashok Leyland (Company 1) Swaraj Mazda (Company 2) Profitability Ratios 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Gross Profit Margin (%) 7.86 4.77 7.49 8.32 6.78 7.31 3.38 6.61 6.62 6.76 Operating Profit Margin (%) 10.09 7.66 10.23 10.67 9.43 7.8 4.96 7.81 7.62 7.78 Liquidity Ratios Current ratio 1.08 1.29 1.22 1.09 0.88 0.96 0.85 1.19 1.23 1.25
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w w w e tr .X Syllabus m eP e ap .c rs om Cambridge IGCSE Accounting Syllabus code 0452 For examination in June and November 2013 Contents Cambridge IGCSE Accounting Syllabus code 0452 1. Introduction ..................................................................................... 2 1.1 1.2 1.3 1.4 Why choose Cambridge? Why choose Cambridge IGCSE Accounting? Cambridge International Certificate of Education (ICE) How can I find out more? 2. Assessment at a glance ......
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economic environment on a selected business – D1 After various changes to the economic tax and interest rate‚ CPHP have conducted and compiled research into current public spending. The results show that there has been a dramatic reduction in the level of public spending in the UK. The changes in economic environment will affect a business‚ the profit of the business will be affected because its affect the price and income of a business‚ which are the main aspect of a business. If Tesco decides to
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Computer software‚ Electronics | Geographic areas served | Worldwide | Headquarters | U.S. | Current CEO | Steve Ballmer | Revenue | $ 73.72 billion (2012) | Profit | $ 16.97 billion (2012) | Employees | 94‚000 (2012) | Main Competitors | Apple Inc.‚ Google Inc.‚ Samsung Electronics Co.‚ Ltd.‚ International Business Machines Corporation and many others. | Microsoft Corporation is one of the best-known software companies in the world. The company is famous for its Windows and Office
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UNDERSTANDING THE TRADING AND SETTLEMENT PROCESS AND OTHER DOCUMENTORY REQUIREMENTS AT BROKERS’ OFFICE TO OPEN THE TRADING ACCOUNT Understanding Trading and Settlement of Equities Stock market is a trading platform which provides an opportunity to buyers and sellers of securities to do transactions. As of now there are 23 recognised stock exchanges in India and 24th is likely to get
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Types of Receivables Accounts Receivable: amounts due from customers for sales on credit. Businesses sell to customers on credit in an attempt to increase their sales. Also called Trade Debtors. Bills Receivable: similar to accounts receivable but bills receivable are a legal instrument. Interest is charged on the bill receivable and it usually gives more time to pay than accounts receivable. interest receivable‚ rent receivable Accounts Receivable Recognition of accounts receivable Recorded
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In the books of a Company Cost Sheet for the period ended…….. Units Produced….. Name of the product unit sold…. Particulars Total cost Rs. Unit Cost Rs. Opening stock raw materials Add Purchases of Raw Materials Add: Expenses on Purchases of Raw Materials (octroi & duty) Less: Closing stock of raw materials Less: Sale of scrap or defectives of raw materials = Cost of materials consumed Add: Productive Labour Add: Outstanding wages Add: Direct Expenses( architect’s
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