Explain the difference between capital and revenue items of expenditure and income P2 Capital Income Capital income is the money invested by owners or investors that fund the setting up of a business. The source of capital income is influenced by the type of business. Sole trader is a business which is owned individually‚ meaning their capital income comes from their own money (savings) or personal loans. Partnership is when between two and twenty people join to form a business as partners.
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406 ACC 2301 INTRODUCTORY MANAGEMENT ACCOUNTING Section 011 (Monday) Final Exam‚ Winter Term 2012 (May 25th‚ 2012‚ 1:10 p.m. - 3:10 p.m. in Room TRS2-147) INSTRUCTIONS TO STUDENTS: 1. This 2-hour test consists of 5 questions (7 pages). 2. Marks total 45. 3. All questions must be answered on this paper in the spaces following the questions. Pages are not to be separated and all pages must be submitted without exception. 4. Calculator (model Royal XE24 or XE36
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P2: Describe the different stakeholders who influence the purpose of two contrasting businesses. What are stake-holders? Stake-holders are any individuals‚ organizations and companies’s interested in the business section and are affected by the business activities. Internal stake-holders are groups within the business; On the other hand‚ External stake-holders are those outside the business‚ for example‚ the community. Internal stake-holders consist of: Owners: Interested in making profit and
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2a) a) Increasing the difference between the sample mean and the original. The z score represents the distance of each X or score from the mean. If the distance between the sample mean and the population mean the z score will increase. b) Increasing the population standard deviation. The standard deviation is the factor that is used to divide by in the equation. the bigger the SD‚ then the smaller the z score. c) Increasing the number of scores in the sample. Should bring the samples mean
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Weygandt‚ Paul D. Kimmel‚ and Donald E. Kieso‚ accounting principles 2012 Microsoft Corporation‚ Template http://office.microsoft.com/en-us/templates/pro-forma-income-statement-TC101877359.aspx A Securities and Exchange Commission Staff Paper November 16‚ 2011‚ A Comparison of U.S. GAAP and IFRS http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/how-write-business-plan University of Washington‚ Financial Accounting‚ http://f2.washington.edu/fm/fa/internal-controls
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Tom Brown‚ the controller for MicroTech Software Company‚ is responsible for preparing the company’s financial statements. He learns that sales for the first quarter of the year have dropped so dramatically that the company is in danger of bankruptcy. As a result‚ he applies for an accounting position with another software company that competes with MicroTech. During his job interview‚ Tom is asked why he wants to leave MicroTech. He replies truthfully‚ “The company sales are down another
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owner or owners. 2. The four basic financial statements include the balance sheet‚ income statement‚ statement of retained earnings and statement of cash flows. 3. A balance sheet covers a period of time‚ such as a month or year. 4. The income statement shows the financial position of a business on a specific date. Chapter 2 5. Debit means the right-hand side of any account. 6. In a double-entry accounting system‚ total amount debited must always
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Q & T Explain what debit and credit mean. T For each of the following transactions of Dennen‚ Inc.‚ for the month of January 2015‚ indicate the accounts‚ amounts‚ and direction of the effects on the accounting equation. A sample is provided. a. (Sample) Borrowed $30‚000 from a local bank b. Lent $10‚000 to an affiliate; accepted a note due in one year. c. Sold 100 additional shares of stock with a par value of $.10 per share to investors for $500 cash. d. Purchased $15‚000 of equipment‚ paying $5000
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E1-1 Urlacher Company performs the following accounting tasks during the year. Communicates__Analyzing and interpreting information. Records__Classifying economic events. Communicates__Explaining uses‚ meaning‚ and limitations of data. Records__Keeping a systematic chronological diary of events. Records__Measuring events in dollars and cents. Communicates__Preparing accounting reports. Communicates__Reporting information in a standard format. Identifies Identifies_Selecting economic activities
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introduction to finical accounting. For me‚ this is the first time I had chance to learn this subject‚ before that I just heard some information about IFA by reading the FT newspaper and watching the news. When I start learning that‚ this subject gives me the impression that it is difficult to understand. During the past few months‚ I can say I already mastered some of the skills in IFA. I can still remember the first lecture I had learned was the definition of the “Accounting Equation”‚ I can conclude
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