Q i) Expalin in detail five basic accounts along with their types and examples Five basic Acounts 1. Assets 2. Liabilities 3. Capital/Owner Equity 4. Revenue/Income 5. Expenses Assets Assets are the resources owened by a business and are expected to give benefit for future operation Example: If you buy a land and it will give benefit in the future operation then it is your asset . if the land which you buy And in future you have to sell only then this is not your asset. If you built
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CURRENT LIABILITIES & CONTINGENCIES ECON 136A REFRESHER What is a liability? Present (not necessarily current) unavoidable obligation; Result of a past transaction; Chapter 13 What makes a liability current? Conversion in one year or operating cycle‚ whichever is longer Current liabilities are not recorded at their present value as they “turn” soon enough that there is no material difference. Bob Anderson‚ UCSB 2004 13-1 13-2 Bob Anderson‚ 2004 07:35 136A Concepts Notes Payable
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obligations are owed within one year. Current liabilities appear on the company’s balance sheet and include short-term debt‚ accounts payable‚ accrued liabilities and other debts. Current liabilities are separated from long-term liabilities on classified balance sheets. (You do not have to prepare a classified balance sheet‚ but it is the norm. Classified balance sheets also separate the current assets from the long-term assets). Knowing which liabilities will have to be paid within one year is important
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and losses and revenue earned during that period. Balance Sheet gives a summary of assets and liabilities as on a particular date and shows the financial position of the business. The liabilities side of a balance sheet shows the sources from where funds are raised and the assets side shows how the funds raised are utilized. But it does not show the causes or reasons for changes in assets and liabilities‚ flow of funds‚ between two balance sheet dates. Therefore‚ a statement is prepared in addition
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Tutor note: It is preferable that this is filled in electronically. This form is available on the staff intranet: Click on the ‘Quality’ tab and then the ‘Curriculum Quality Link’ to the right and then ‘Curriculum Quality Procedures’ from the table of contents. Department: ISC- Business | Course Code: SL3BUSFND118 | Course Name: BTEC Level 3 Certificate ate in Business | Unit Number: Unit 2 | Unit Name: Business Resources | Candidate Name: I certify that this is all my own work
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459900 418480 9.88% Total Assets 587767 548535 7% Liabilities 2009 2008 Percentage Total Current Liabilities 23807 8380 184% Other Liabilities 438346 205069 114% Equity 125614 335085 -62.51% Total Liabilities and Equity 587767 548534 7.15% The Patton Fuller Community Hospital increase its assets from 2008 to 2009 by 7% based on the numbers in the balance sheet. The Total Liabilities and Assets increased by 7.15% in 2009. We were unable to perform
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basic accounting equation to answer these questions. (a) The liabilities of Cummings Company are $90‚000 and the stockholders’ equity is $230‚000. What is the amount of Cummings Company’s total assets? (b) The total assets of Haldeman Company are $170‚000 and its stockholders’ equity is $90‚000. What is the amount of its total liabilities? (c) The total assets of Dain Co. are $800‚000 and its liabilities are equal to one-fourth of its total assets. What is the amount of Dain
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a Stewart invested $100‚000 and became the sole shareholder. Assets + Expense = Liabilities + Incomes Asset named Cash Balance created and Liability Shareholder’s Capital gets created 100000 + 0 = 100000 + 0 b Purchased inventory on account for $200‚000. Assets + Expense = Liabilities + Incomes Asset named Inventory created and Liability Vendor payable gets created 200000 + 0 = 200000 + 0 c Sold inventory for $200
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deferred tax liability should be recorded to reflect the future tax consequences of the temporary difference. Income tax expense (to balance) 140‚000 Deferred tax liability ([$400‚000 – 250‚000] x 35%) 52‚500 Income tax payable ($250‚000 x 35%) 87‚500 As a result‚ net income is $260‚000: Pretax accounting income $400‚000 Income tax expense 140‚000 Net income $260‚000 Requirement 2 In its balance sheet‚ Alvis will report the $52‚500 deferred tax liability among either
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A balance sheet is a statement businesses produce that outlines their assets and liabilities. It is a snapshot of their fixed assets‚ current assets‚ current liabilities and long term liabilities for a specific moment in time such as the end of a financial year. Using these figures‚ a business is able to calculate their net working capital; how much the business is worth‚ whether it can afford to expand and if it is a good venture for investors. There are different groups of people who are interested
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