Introduction of the term Financial Accounting
Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?
Expert
Financial Accounting is the procedure in that business dealings are recorded methodically in the different books of accounts managed by the organization so as to make financial statements. Such financial statements are essentially of two types: primary is Profitability Statement or Profit and Loss Account and subsequent is Balance Sheet. The element of Financial Accounting:
i) Monetary Transactions: In financial accounting only dealings in money terms are considered. Transactions not stated in money terms don’t find any place in financial accounting, howsoever imperative they might be from business opinion.
ii) Historical Nature: Financial accounting reflects on only those transactions which are of historical nature that is, the transaction which have already happened. No futuristic transactions find any place in financial accounting, howsoever imperative they might be from business opinion.
iii) Legal Requirement: Financial accounting is a lawful need. It is needed to manage the financial accounting and make financial statements there from. It is as well compulsory to get such financial statements audited.
iv) External Use: Financial accounting is for those people who are not element of decision making procedure concerning the organization such as customers, investors, suppliers, financial institutions and so on. Therefore, it is for external use.
v) Disclosure of Financial Status: It relates the financial status and financial presentation of the business as a entire.
vi) Interim Reports: Financial statements that are depended on financial accounting are interim reports and can’t be the last ones.
vii) Financial Accounting Process: The procedure of financial accounting gets influenced because of the different accounting policies pursued by the accountants. Such accounting policies differ mostly in two regions: Calculation of depreciation and Valuation of inventory.
Explain about deviations from purchasing power parity for countries competitive positions within the world market.
What are the various aspects of Creativity on an individual in the creative industry ?
State the difference between the swap broker and the swap dealer.
What type of Account is Salary outstanding? What do you think, it is real or personnel or the nominal account?
Providing reasons, describe the treatment assigned to the following which estimates national income.(i) Family members working freely on farm owned by family.(ii) The Payment of interest on borrowings through general government.
Average Profit Method: (Goodwill method): The profit earned by an organization throughout previous accounting periods on an average basis is termed as average profit. Goodwill is computed on the basis of average profit due to prospect expectations of
Write a Report on Business memo analyzing monthly sales of a company. Try to explain it with graphs.
Drug maker want to stymie generic competition. Elucidate this statement.
Techniques of valuation of goodwill: A) Average profit technique B) Super profit technique C) Capitalization technique
Big Problem Ltd., an oil refining business uses an allowance system to account for bad debts. At the beginning of the year the allowance had a credit balance of $16,000. The following transactions took place during the year. a) Tot
18,76,764
1955624 Asked
3,689
Active Tutors
1422711
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!