It provides a snapshot of the organization at the end of the year. The accounts are maintained over the year and their position is locked at the end of every financial year and this process is continued to provide consistency in…
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In a balance sheet, the sum of all the liabilities and the equity of an organization should be equal to the assets; as all the assets would either be financed through taking up liabilities or providing equity to the stockholders. Therefore,
Assets are the economic resources that are owned by an organization. They may be tangible in nature such as building, inventory, cash, accounts receivable etc., or intangible in nature such as good will. Broadly speaking, there are two kinds of assets; Fixed and Current Assets. Currents assets are assets which can be easily converted into cash such as inventory and accounts receivable. Assets which cannot be easily converted into cash such as real estate, buildings are known as fixed assets.
Liabilities are debt that is held by an organization. An organization may have taken up debt from its suppliers, or banks, or vendors and creditors. This section shows all the money that an organization has to pay off, in the short term or in the long terms.
The third section, Equity, is another method of raising money, where shares are given to stockholders and money is taken from them for the purpose of the business. Shares help the stockholders become part owners of the organization.
Balance sheet provides information regarding the trends that are present related to an organization regarding the elements of the balance sheet. A comparative analysis of balance sheet items such as accounts receivable, accounts payable would help identify trends over the years regarding these assets and liabilities. Or are the cash reserves declining over the years; the investors might then look deeply into the matter to see the reason behind it. In short, it provides the changing scenario of the organization over the years; in a profit and loss statement, the information is pertaining to that certain year only.
Fixed Assets are a part of the Assets; they are those assets of the organization which cannot be easily converted into
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However, it is also good business to reduce those prices after the introduction period has ended to capitalize on profits from consumers on a budget. This way, the product is not closed to one portion of the market. Certainly, a company should sell the product in question at bare market standards or higher.
According to the regulation, the definition of cost includes all costs of purchase, costs of conversion and all other costs incurred by any firm in bringing the inventories to their personal location and condition. Inventories shall be measured at the lower of cost and net realizable value.
businessdictionary.com) and “A combination of authoritative standards set by policy boards and simply the commonly accepted ways of recording and reporting accounting information”(www.investopedia.com).
Accountants use GAAP to “guide them in recording and reporting
It is only concerned about the rent it has to pay.
In case of condition 2 when Clearday wishes to own an airplane so that they do not have to rent it then, they are faced to some other additional costs like the cost of maintenance etc. Even
GAAP is also essential for every company as it provides the company with a fixed framework that can be followed and this allows the stakeholders to be able to read and understand the statements easily and more effectively (Burke & Litwin). Overall provides a
Operating within the United States, companies under the Security Exchange Commission are required to report their financial information along with appropriate disclosures as per the US GAAP.
Fazer Group is based
Management accounting information also provides relevant information to help managers make better decisions and provide information for planning. Management needs to plan its activities to maintain its operations as a going concern perspective. This will involve determining in
Precisely, companies or organizations which are operating in an energy Sector primarily encompasses its operations pertaining to the engagement in exploration & production activities, marketing, refining and refilling procedures,
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