• Financial Accounting
    assets of a business will always be equal to the sum of its liabilities plus its ownersequity. This is known as the accounting equation, and the practice of financial accounting is built on it. The accounting equation shows the financial position of an entity at a particular point in time. It is...
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  • Week 2 Lecture Notes Acct1501
    payable Equity What belongs to the owners, the residual i.e. what is left after liabilities are taken care of e.g., share capital, retained profits We’ve seen the accounting equation several times now… The accounting equation: Assets = Liabilities + Equity Resources i.e., what we have...
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  • Accounting
    statements The following are elements of financial statements: • Elements by which the financial position (assets = equity + liabilities) is measured: 1. Assets Assets are divided into non-current assets and current assets. Non-current assets These are assets that are owned by an...
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  • Financial Management
    Common Stockholders’ Equity As Figure 12-1 shows, the value of all of a businesses assets (that is, the complete business) equals the sum of the present values of its current liabilities, long-term debt, preferred stock, and common stock. In the remainder of this chapter, we will apply this...
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  • Principles of accounting J. Ireland, D. Leiwy AC1025, 2790025 2011
    . Decreases in expenses We can see the connection consider the double entry and the accounting equation as follows: Assets = Liabilities + Ownersequity Dr: assets = Cr: liabilities + Ownersequity Example 3.3 Joe Smith’s transactions would have the following results: 1. Cash is an...
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  • Accounting Solutions 2
    ? Lecture Activity 3 1. The best description of assets is: (a) The financial claims of non owners (b) Resources capable of providing future benefits to the enterprise (c) Amounts intended to be converted into cash within 12 months (d) Items owned by the business and held for use. Source: Accounting-A...
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  • Economics
    . Another advantage is that because holders of the shares (shareholders) enjoy limited liability, they are not personally liable for the debts of the company. 11. The basic accounting equation is Assets = Liabilities + Owner’s Equity. 12. (a) Assets are resources controlled by an entity. Liabilities...
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  • Financial Reporting - Notes
    by the business (assets) and the obligations owed (liabilities). The difference between assets and liabilities is the residual value of the owner’s interest in the business (equity). The financial position is summarised by the accounting equation as follows: AssetsLiabilities = Equity Assets are...
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  • Mister
    to explain why, we need to re-examine what we mean by ‘accounting’. In Chapter 1 we gave you the following definition: Accounting is a service provided for those who need information about an entity’s financial performance, its assets and it liabilities. Now even with perhaps such a broad...
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  • Coporate Finance
    Liabilities Debentures Ordinary Shares Share Premium a/c P&L Total Equity Capital TOTAL CLAIMS 12 4 16 50 35 40 75 141 27 1 28 35 70 5 50 125 188 Notes: 1. Dividends of £4,000, Interest of £3,000 and Corporation Tax of £5,000 were paid. 2. Fixed assets with a net book value of £8,000 at 31.12.X0...
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  • Domino's Pizza
    . Refocusing: - To help in discontinuing the products or services that are consuming management time with little financial contribution14. B- Business performance analysis 1-The performance review process: SWOT analysis The report will now be showing the internal audit of the chosen company. To give...
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  • Financial Accounting
    FINANCIAL ACCOUNTING Answer to Example 4.1 continued Bush Balance sheet at 30 June 2008 £ Fixed assets Motor vehicles at cost (5) Current assets Trade debtors (10) Bank (1) Cash (3) Current liabilities Trade creditors (9) £ 6 000 10 000 5 000 1 000 ––––––– 16 000 4 000 –––––– 12 000...
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  • Marketing
    Capital and Implications of various Committee Reports. UNIT-I LESSON 1 FINANCIAL ACCOUNTING CONTENTS 1.0 Aims and Objectives 1.1 Introduction 1.2 Process of Accounting 1.2.1 What is Cash System? 1.2.2 What is Accrual System? 1.2.3 Value at Which it is to be Recorded ? 1.3 Utility of the...
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  • accounting
    : Achievement of Objective (Put a Check mark) 1 Define the accounting equation and know the effects of the financial transactions on the accounting equation 2 Familiarize with the types of accounts for assets, liabilities, capital, income and expenses Objective 1 The Accounting Equation...
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  • Accounting for Non-Accounting Students
    report to any of its managers. CHAPTER 1 THE ACCOUNTING WORLD 11 External auditors formally report to the owners on whether the financial accounts represent what is called ‘a true and fair view’ of the entity’s affairs. They may do some detailed checking of its records in order to be able to...
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  • Malashree Hdfc Project
    organization of HDFC STANDARD LIFE is having a strategy of sharing values. SWOT ANALYSIS STRENGTHS 1. HDFC Standard life insurance offers a range of individual and group insurance solutions. 2. HDFC Standard Life has the financial expertise required to manage your long-term investments...
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  • Accounting
    equation. Recall that the accounting equation is as follows: Assets - Liabilities = Owners Equity Owner Equity = Capital + Retained Earnings The Balance Sheet must also be prepared on the Entity Convention. The Entity Convention states that the personal assets and liabilities of the owner(s...
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  • Accounting Cycle
    Part 1 Your goals for this “welcoming” chapter are to learn about: The nature of financial and managerial accounting information. The accounting profession and accounting careers. The fundamental accounting equation: Assets = Liabilities + OwnersEquity. How transactions impact the...
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  • Financial Accounting
    Pakistan 82 Financial Accounting (Mgt-101) VU Lesson-12 THE ACCOUNTING EQUATION Resources in the business = Resources supplied by the owner In accounting, terms are used to describe things. The amount of resources supplied by the owner is called capital. The actual resources which are in the...
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  • Acca
    Liabilities Net carrying amount $000 600 (50) –––– –––– $000 300 (20) –––– –––– 550 280 An amount of $50,000 relating to the assets of disposal group 1 has been recognised directly in equity, as a result of an asset revaluation. The summarised statement of financial position of the entity...
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