FINANCIAL STATEMENTAll businesses n

FINANCIAL STATEMENT
All businesses need to maintain financial records in order to find out if they are making a profit. These records exist in several forms. In daily business operations recordings of business transactions are first made in a journal. This journal is sometimes called the book of original entry. In the journal, bookkeepers record sales, uses of raw materials, and purchases. Periodically, bookkeepers transfer figures from the journal to ledgers. This activity is known as posting. The ledger is a book containing all the accounts of a company. An account is a financial record which contains information about a group of similar transactions. For example, all sales activities are recorded in one account. Another account may be a record of all the costs of raw materials.
Once, bookkeeping served as a good method of determining whether or not a company was making profits and whether or not it owed any taxes. Small business owners could keep their own books and make business decisions based on the information found there. Nowadays, a more sophisticated system of accounting is needed. The design, maintenance, and interpretation of the information recorded in accounts is referred to as accounting. Accountants use the information in accounts to construct financial statements. These statements are analyzed by management and used as a basis for business decisions such as allocation of financial resources, development of new products, and expansion of operations. The most important of these financial statements are the balance sheet and the statement of income and expenses. These statements are also used for determining income tax liabilities. Income-expense statements for different types of businesses vary greatly. This lesson will discuss only the balance sheet, which is more standard in form.
The balance sheet is a financial statement which indicates the condition of a company on a specific date. It is called a balance sheet because it expresses the basic accounting formula: Assets = Liabilities + Owners’ Equity. (Owners’ equity is sometimes referred to as net worth.)The left side of the balance sheet itemizes the firm’s assets. Assets are anything of value to a company. On a balance sheet the value is always expressed in terms of money. Companies have different types of assets. They are usually divided into two groups: current assets and fixed assets.
Current assets are either cash or items which will be turned into cash during the current business period, such as merchandise to be sold and payments to be received. In addition to cash, inventories and receivables, companies sometimes have stocks and bonds. These are referred to as securities. All of these assets, such as cash or those readily turned into cash, are known as liquid assets. If a company needs to have more cash for one reason or another, it can liquidate some of its stocks and bonds. On the other hand, merchandise which is not selling quickly because there is not much demand is not very liquid, even though it is considered as current assets.
Fixed assets are those that will be kept and used for a long time. Fixed assets are usually itemized according to their use to the firm. New machinery and production equipment are valued at their cost. As the equipment is used, its value decreases. This decrease in value is called depreciation. Used equipment is therefore carried on the books at original cost less depreciation. Depreciation is usually calculated on a yearly basis by dividing the total cost of the equipment by a number of years of useful life. For example, a taxicab may cost $12,000 when new. The taxicab owner may use it for three years and then he will have to purchase a new one. The depreciation on the taxicab is $4,000 per year. Therefore, after one year the value of the taxicab on the balance sheet would be $12,000 - $4,000 = $8,000. After two years it would be $12,000 - $8,000 = $4,000. There are various formulae and methods used for calculating depreciation. The depreciation schedule may be part of the income tax laws of a country.
Other fixed assets are furniture and fixtures. Fixtures refer to equipment that is attached to the building. There are light fixtures and plumbing fixtures. Fixtures would also include items such as shelves and air-conditioning and heating equipment. Buildings are another fixed assets. On the balance sheet the value of fixtures and buildings would also indicate accumulated depreciation. Land is also a fixed asset, but its value does not decline, and so it shows no depreciation.
The opposite side of the balance sheet shows the liabilities. These are amounts which the company owes. Companies owe money to banks who supply credit to employees whom they haven’t yet paid, to governments for taxes, and to other companies who have sold them goods which they haven’t yet paid for. Liabilities, like assets, are divided into two groups. Current liabilities are debts which must be paid during the current busi

Kết quả (Anh) 1:

FINANCIAL STATEMENTAll businesses need to maintain financial records in order to find out if they are making a profit. These records exist in several forms. In daily business operations recordings of business transactions are first made in a journal. This journal is sometimes called the book of original entry. In the journal, bookkeepers record sales, uses of raw materials, and purchases. Periodically, bookkeepers transfer figures from the journal to ledgers. This activity is known as posting. The ledger is a book containing all the accounts of a company. An account is a financial record which contains information about a group of similar transactions. For example, all sales activities are recorded in one account. Another account may be a record of all the costs of raw materials.Once, bookkeeping served as a good method of determining whether or not a company was making profits and whether or not it owed any taxes. Small business owners could keep their own books and make business decisions based on the information found there. Nowadays, a more sophisticated system of accounting is needed. The design, maintenance, and interpretation of the information recorded in accounts is referred to as accounting. Accountants use the information in accounts to construct financial statements. These statements are analyzed by management and used as a basis for business decisions such as allocation of financial resources, development of new products, and expansion of operations. The most important of these financial statements are the balance sheet and the statement of income and expenses. These statements are also used for determining income tax liabilities. Income-expense statements for different types of businesses vary greatly. This lesson will discuss only the balance sheet, which is more standard printed form. The balance sheet is a financial statement which indicates the condition of a company on a specific date. It is called a balance sheet because it expresses the basic accounting formula: Assets = Liabilities + Owners ' Equity. (Owners ' equity is sometimes referred to as net worth.) The left side of the balance sheet itemizes the firm's assets. Assets are anything of value to a company. On a balance sheet the value is always expressed in terms of money. Companies have different types of assets. They are usually divided into two groups: current assets and fixed assets. Current assets are either cash or items which will be turned into cash during the current business period, such as merchandise to be sold and payments to be received. In addition to cash, inventories and receivables, companies sometimes have stocks and bonds. These are referred to as securities. All of these assets, such as cash or those readily turned into cash, are known as liquid assets. If a company needs to have more cash for one reason or another, it can liquidate some of its stocks and bonds. On the other hand, merchandise which is not selling quickly because there is not much demand is not very liquid, even though it is considered as current assets. Fixed assets are those that will be kept and used for a long time. Fixed assets are usually itemized according to their use to the firm. New machinery and production equipment are valued at their cost. As the equipment is used, its value decreases. This decrease in value is called depreciation. Used equipment is therefore carried on the books at original cost less depreciation. Depreciation is usually calculated on a yearly basis by dividing the total cost of the equipment by a number of years of useful life. For example, a taxicab may cost $ 12.000 when new. The taxicab owner may use it for three years and then he will have to purchase a new one. The depreciation on the taxicab is $ 4.000 per year. Therefore, after one year the value of the taxicab on the balance sheet would be $ 12.000-8.000 4.000 = $ $. After two years it would be $ 12.000-8.000 = $ $ 4.000. There are various formulae and methods used for calculating depreciation. The depreciation schedule may be part of the income tax laws of a country. Other fixed assets are furniture and fixtures. Fixtures refer to equipment that is attached to the building. There are light fixtures and plumbing fixtures. Fixtures would also include items such as shelves and air-conditioning and heating equipment. Buildings are another fixed assets. On the balance sheet the value of fixtures and buildings would also indicate accumulated depreciation. Land is also a fixed asset, but its value does not decline, and so it shows no depreciation. The opposite side of the balance sheet shows the liabilities. These are equivalent of which the company owes. Companies owe money to banks who supply credit to employees whom they haven't yet paid, to governments for taxes, and to other companies who have sold them goods which they haven't yet paid for. Liabilities, like assets, are divided into two groups. Current liabilities are debts which must be paid during the current busi

Kết quả (Anh) 2:

FINANCIAL STATEMENT
All Businesses need to Maintain Financial records to find out if in order making a profit chúng. These records exist in vài forms. In the daily business operations of business transactions are first recordings made ​​in a journal. This journal is sometimes the book of original entry gọi. In the journal, bookkeepers record sales, raw materials dùng of, and purchases. Periodically, bookkeepers transfer to figures from the journal ledgers. This activity is known as posting. The Ledger is a book containing all the accounts of a company. An account is a Financial records information about a group chứa of similar transactions. For example, all sales are thu hoạt in one account. Another account of all lẽ a record of raw materials the Costs.
Once, BOOKKEEPING served as a good method of quyết nếu or not a company was making profits and nếu or not it Owed any taxes. Small business owners could keep books and make business Their Own Decisions based on the information found there. Nowadays, a more sophisticated system of accounting is needed. The design, maintenance, and interpretation of the information thu is Referred to as accounts in accounting. Accountants use to construct the information in the Financial accounts statements. These statements are analyzed by management and used as a basis for business allocation of Financial Decisions như resources, development of new products, and expansion of operations. The most Important of những Financial statements are the balance sheet and the statement of income and Expenses. These statements cũng used for income tax Liabilities quyết. Income-expense statements for Different types of Businesses vary greatly. Discuss this lesson only the balance sheet sẽ, mà more standard printed form.
The balance sheet is a Financial Statement những the condition of a company ngụ on a specific date. It is a balance sheet gọi vì it expresses the basic accounting formula: Assets = Liabilities + Owners' Equity. (Owners' equity is sometimes Referred to as net worth.) The left side of the balance sheet itemizes the firm's assets. Assets are anything of value to a company. On a balance sheet the value is always Expressed in terms of money. Different types of companies have assets. They are Divided into two groups Thường: current assets and fixed assets.
Current assets are cash or items hoặc Be Turned Into cash sẽ trong khi the current business period, merchandise to be sold như and payments to be received. In to addition to cash, inventories and receivables, stocks and bonds companies sometimes have. Referred to as These are securities. All of những assets, cash or những như Turned Into cash readily, are known as liquid assets. If a company needs to have more cash for one reason or another, it can liquidate some stocks and bonds of ITS. On the other hand, not selling merchandise Quickly mà is not much demand vì is not very liquid, Even Though it is Considered as current assets.
Fixed assets are những sẽ kept and used for a long time. Fixed assets are itemized theo có Thường use to the firm. New machinery and production equipment are Valued at có cost. As the equipment is used, nó value decreases. This value is gọi Decrease in depreciation. Used equipment is therefore Carried on the books at original cost less depreciation. Depreciation is calculated on a yearly basis Thường by Dividing the total cost of the equipment by a number of years of life ích. For example, a $ 12,000 cost Taxicab khi new garment. The Taxicab owner use it for three years sewing and then he phải purchase a new one. The depreciation on the Taxicab is $ 4,000 per year. Therefore, after one year the value of the balance sheet on the Taxicab would be $ 12,000 - $ 4,000 = $ 8,000. After two years it would be $ 12,000 - $ 8,000 = $ 4,000. There are various formulas and methods used for Calculating depreciation. The depreciation schedule part of the income lẽ Laws of a country tax.
Other fixed assets are furniture and fixtures. Fixtures refer to equipment attached to the building nằm. There are light fixtures and plumbing fixtures. Fixtures would also include items như shelves and air-conditioning and heating equipment. Buildings are another fixed assets. On the balance sheet the value of fixtures and buildings would indicate accumulated depreciation cũng. Land is a fixed asset cũng, but does not nó value decline, and so it shows no depreciation.
The opposite side of the balance sheet shows the Liabilities. These are tiền đó company owes. Companies owe money to banks supply credit to employees who have not yet paid chúng Whom, to Governments for taxes, and to other companies who have sold add Method for mà They have not yet paid for. Liabilities, like assets, are Divided into two groups. Current Liabilities are debts paid khi đó Phải the current busi