Why is there a need for standardised profit and loss and balance sheet accounting?
hi, just doing some reaseach on the need for standardised accounting profit and loss and balance sheet formatting.
I know the basics in the sence that its useful for comparitability what others can you think of?
thanks
x
It helps the management to explain to the share holders in the annual share holders meeting the result and performance of the company in a much easier and informative way, when it presented in a standard form. It also assist the bank and other financial institutions to judge the performance of the company and finally in the UK for filing the information with the companies house, which require a standard format,depending on the size of the company and its turnover.
2006-10-14 14:01:03 by marie m
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The Balance Sheet tells you the financial position of your business. Its essential you are able to read and interpret it. Small business ...
Couple of balance sheet accounting questions?
a) If a company generates say $500k in net income for the quarter and uses it to retire long term debt, what is the adjustment to the asset side of the balance sheet? Or does retained earnings go down? But the $500k is from new income, so shouldn't retained earnings stay the same?
b) If a company has net earnings of say $500k and pays it out as a cash dividend, what happens to the balance sheet? Nothing?
A: The change is a credit to cash and a debit to long term debt. Doe not affect the earnings at all. Retained earnings remains the same.
B: Credit to cash and a debit to stockholder equity. Again it does not affect the retained earnings but does affect the balance sheet. From one year to the next, the comparison of balance sheet would be the same. But the entries are on the balance sheet and not the P&L.
2008-02-04 19:23:44 by Wayne
What is best way to remeber account of trading profit and loss account , balance sheet and trival balance way?
What is best way to remeber account of trading profit and loss account , balance sheet and trival balance method?
Please help urgent. anybody can help me.
You must understand the double entry system 1st, and then get hold of a book which has plenty of exercises and do all of them. Practice, practice and more practice is the only way to get accounts at your finger tips.
2007-09-24 02:40:52 by Meili Wong
Accounting, balance sheet?
Ok so I am new to accounting and trying to learn it, and the book sucks and doesnt explain anything. Can anyone help?
Ok so a retained earnings statement tells you your income, minus your dividends right?
On a balance sheet you have the assets and then your liabilities and stock equity. does a balance sheet show me that the money i got for me assets is the money i borrowed from creditors and stock?
What is depreciation then and how does it fit into the balance sheet?
On the Profit & Loss account, the current assets are broken down so as to show how much is stock, how much is owed TO you buy debtors, cash you have and short-term investments.
I believe that money borrowed from creditors is actually a liability, since is money that you owe. However, if you do not have to pay this money back within a year then I believe it is then a loan and not a current liability. Either way, these come under liabilities and no current assets.
Depreciation is the amount by with the value of your fixed assets fall within a given period of time (or have fallen since the last valuation). It helps to keep up to date valuations on the worth of the business, since the fixed assets contribute to the wealth of a business and usually do lose worth with time (as they become worn down or obsolete).
Hope I've helped.
2008-09-04 17:36:09 by Sandra Panda
Accounting Balance Sheet True/False Question?
On the balance sheet, for a manufacturing business, cost of direct materials, direct labor, and factory overhead which have been entered into manufacturing process but are associated w. products that have not been finished, is reported as direct materials inventory. True or false.
F. It is reported as work in process.
2008-03-05 12:40:38 by Joey B
accounting balance sheet
Financial Accounting Jane L. Reimers Balance-sheet app
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Kocherlakota Backs Setting Floor on Fed Balance Sheet BusinessWeek
(Updates with comments in sixth paragraph.)
Sept. 8 (Bloomberg) -- Federal Reserve Bank of Minneapolis President Narayana Kocherlakota backed the Fed’s decision last month to reinvest maturing mortgage bonds into Treasuries as a way to sustain economic growth.
A decline in long-term assets on the Fed’s balance sheet could have been “a drag on the recovery,” Kocherlakota said today in a speech in Missoula, Montana. He would have voted for the Aug. 10 decision had he been a voting member of the Federal Open Market Committee, he said.
Policy makers are debating what level of monetary stimulus to provide the U.S. economy amid a weakening in growth during recent months. Chairman Ben S. Bernanke said last month that the Fed “will do all that it can” to safeguard the economic recovery and that more securities purchases may be warranted if growth slows.
The FOMC decided in August to keep its bond holdings at $2.05 trillion and held the main interest rate unchanged at zero to 0.25 percent, where it’s been since December 2008. The committee also affirmed a pledge to keep rates low for “an extended period.”
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Testing the debt load on your balance sheetEnsure you have an accurate profit and loss and balance sheet for the eight months ended February 28, 2009. If weekly financial statements are available, even better. * If your monthly financial statements cannot be reviewed within a week or two of the
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MiamiHerald.comFord Reports First Quarter 2009 Net Loss of $1.4 Billion+ "The successful debt restructuring, coupled with previously announced agreements with the United Auto Workers, will strengthen Ford's balance sheet and will result in significant savings going forward," said Lewis Booth, Ford executive vice president Ford reports $1.4B first-quarter loss
stv.tvWhat Bank Earned $32 billion In 2008?Federal Reserve Chairman Ben Bernanke has said repeatedly that the Fed is very careful with its balance sheet and does not foresee any losses from the vast majority of its uncharted forays into the economy. The annual statements, audited by Deloitte Maiden losses for Fed Fed Transferred $31.7B To Treasury In '08, Down $2.9B From '07
MiamiHerald.comA look at its balance sheet suggests such an outcome is not unthinkable. First, investors should focus on valuations within Wells Fargo's $178 billion securities portfolio. After mark-to-market accounting rules were tweaked, the bank was able to Behind those great numbers Wells Fargo reports 52% jump in earnings An RX for Banks -