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accounts are prepared according to accounting concepts principles and conventions as final accounts are prepared on accrual basis this becomes
reserves and surplus or retained earnings usually occur out of profitable operations this is a surplus not distributed through the firm as dividends
capitalwe have seen previous in this section that the fundamental accounting equality states asassets liabilities owners equity from the
long-term liabilitiesthese are usually for more than one year they cover almost all the outsiders liabilities not comprised in the current
these should be distinguished from estimated liabilities estimated liabilities are identified liabilities where the amount is uncertain contingent
where the liabilities are identified but the amounts cannot be precisely found we estimate the liability and give for it as a liability a common
accrued liabilities show expenses or obligations incurred in the earlier accounting period but the payment for similar will be made in the subsequent
accounts payable or sundry creditors are generally unsecured debts owed through the firm these are also considered to as payables on open accounts
does manufacturing overhead include the following1material handling - labour for purchasing material shipping inbound for raw materials and outbound
current liabilitieswe have studied about liabilities are claims of outsiders against the business conversely these are amounts owed through the
these are assets or things of value without physical dimensions they cannot be touched they representing intrinsic value without material being and
fixed assetsthese are tangible relatively long-lived items owned through the business the benefit of these assets is obtainable not only in the
prepaid expensesin many conditions like a custom some of the item of expenses is generally paid in advance such as rent taxes insurance and
inventorywithin a trading firm inventory is merchandise held for sale to customers into the ordinary course of business in condition of manufacturing
these are amounts owed to the company through debtors this is the purpose why we also utilize the term sundry debtors to indicate the amounts owed to
it is generally taken to include currency or legal tender cheques or any other document which circulates as cash it is generally classified like a
current assetsthese are assets that will normally be converted in cash within a year or inside the operating cycle the operating cycle is the
the balance sheet lists assets capital and liabilities separately this is an accepted convention about the assets and liabilities are demonstrated in
accounting concepts the dual aspect principle has specific relevance to balance sheet according to this principal every transaction is concerned as
comprising examined the conceptual origin of the balance sheet we will here try to study the balance sheet by itself we have observed that every
marvins motors company mmc manufactures outboard motors for use on small to medium sized boats mmc produces three models the standard the deluxe and
3 definitions of manufacturing concepts interstate manufacturing produces brass fasteners and incurred the following costs for the year just
definitions of manufacturing concepts interstate manufacturing produces brass fasteners and incurred the following costs for the year just
manufacturing statements and cost behavior tampa foundry began operations during the current year manufacturing various products for industrial
explain how accounting information may be used when an owner wants to justify a price in one of their lines of house