Profit and loss accounts and balance sheet By law companies are expected to produce financial statements each year. These statements appear in Company Reports. There are two main financial statements: 1. The profit and loss account‚ and 2. The balance sheet. 1.The profit and loss (P&L) account. This account can be updated regularly and shows how much profit or loss a business is making. A profit can be made in several ways‚ for example: * from trading‚ in the case of a High Street shop
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ZARA Income Statement Period Ending: 2012 31/12 2011 31/12 2010 31/12 2009 31/12 Total Revenue 82.98 78.19 89.69 76.7 Revenue 82.98 78.19 89.69 76.7 Other Revenue‚ Total - - - - Cost of Revenue‚ Total 60.29 56.72 59.02 52 Gross Profit 22.69 21.47 30.67 24.7 Total Operating Expenses 77.61 73.35 74.12 63.51 Selling/General/Admin. Expenses‚ Total 3.69 3.24 3.96 3.56 Research & Development - - - - Depreciation / Amortization 13.63 13.38 11.14 7
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Student Name: Instructions: Go to the CanGo intranet found in the Report Guide tab under Course Home Use the financial statements from the most recent year to fill in the table below. You may find some formulae calling for an average‚ e.g.‚ average inventory‚ average receivables. Because we only have the Balance sheet for one year‚ you can only use the one year number not an average. Assume interest expense is $0.00 Be sure to cite your references
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the bottom line of their income statement and is a measure of the firm’s income over a given period of time. The cash flow of a firm shows how a firm has used the cash it earned during a set of time. There are two reasons that the income statement does not show the amount of cash earned. One‚ there are non-cash entries on the income statement and second‚ there are certain uses such as a purchase of a building that are not reported on the income statement. The statement of cash flows utilizes the
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Accounting”・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 1 Discussion Paper “Objectives of Financial Reporting” ・・・・・・・・・・・・・・・4 Discussion Paper “Qualitative Characteristics of Accounting Information” ・・・・・12 Discussion Paper “Elements of Financial Statements” ・・・・・・・・・・・・・・22 Discussion Paper “Recognition and Measurement in Financial Statements” ・・・・32 Issuance of the Series of Discussion Papers “Conceptual Framework of Financial Accounting” Background Information on the Issuance of the Series of Discussion Papers “Conceptual Framework of
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accounting periods. T162. An adjusting entry includes at least one balance sheet account and at least one income statement account. T163. Recording incurred but unpaid expenses is an example of an accrual. F164. If all transactions were originally recorded in conformity with GAAP‚ there would be no need for adjusting entries at the end of the period. T165. Every adjusting entry must change both an income statement account and a balance sheet account. F166. When the reduction in prepaid expenses is not
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Requires that (1) determining whether a milestone is substantive should be made only at the inception of the arrangement‚ and (2) to be substantive‚ consideration earned from the achievement of a milestone should: Be commensurate with the vendor ’s performance to achieve the milestone or with the enhancement of the value of the delivered items. Relate only to past performance (no portion of the milestone may relate to remaining deliverables and no portion may be refundable or adjusted through
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Balance Sheets A general ledger is the foundation of a company’s financial records‚ as they constitute the central summary of a company’s financial system. Every transaction is recorded through the general ledger. These records remain as a permanent track of the history of all financial transactions since the opening day of the company (Business Town‚ n.d.). The purpose of any business is to increase the owner’s equity through solid revenues. These revenues increase assets or proceed to decrease
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RATIOS TELL A STORY—2011 Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example‚ some industries require large investments in property‚ plant‚ and equipment (PP&E)‚ while others require very little. In some industries‚ the competitive productpricing structure permits companies to earn significant profits per sales dollar‚ while in other industries
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structured and meet specified goals. a. Geographical b. Social c. Private d. Specified 2. Building a vision involves the joint efforts of the owner and ____________ of the organisation. a. Employees b. Stakeholders c. Competitors d. Vendors 3. When a company has many business operations running out of different centres‚ the plan made by the head office/ headquarter to achieve the organisational vision‚ is known to be _________________. a. Corporate strategy b. Functional strategy c. Business strategy
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