Accounting equation

2.2 Profit Determination Equation Profit is the amount whereby it is calculated with the formula, revenue minus expenses in a business (Appendix 3). The owner will obtain profit when the total revenue exceeded the total of expenses. What is a revenue? Revenue is an amount that the owner earned during the business period. For example, when the owner rents out one of his or her shoplot to others for business purposes, the owner will receive rental fee from them as a revenue which means profit. This means that the owner will obtain and earn income from them who pays the rental fee . In contrast, expenses are costs that the owner have spent for his or her business. For example, staff’s salaries are expenses in a business. Why are staff’s salaries being categorized as expenses? This is…

With this accounting equation, it is presented to give you an idea of a double entry accounting. And when a company borrows from the bank, a company 's cash account can increase and its liability account loans payable will increase. If the company pays for advertisement their cash flow will decrease but the account advertisements expenses can increase. Connections between an income statement and Balance sheet Each of the financial statements is on separate sheets for the annual financial…

Basic Accounting Equations 1. Recognition of normal balances a. Amounts paid to a mall for rent………………… E Normal Balance as Debit b. Amounts to be paid in 10 days to suppliers……… L Normal Balance as Credit c. A new fax machine purchased for office use. …….. A Normal Balance as Debit d. Land held as an investment……………………….. A Normal Balance as Debit e. Amounts due from customers…………………….. A Normal Balance as Debit f. Daily sales of merchandise sold………………….. R Normal Balance as…

Oct. 1 Pete Hanshew begins business as a real estate agent with a cash investment of $15,000. 2 Hires an administrative assistant. 3 Purchases office furniture for $1,900, on account. 6 Sells a house and lot for B. Kidman; bills B. Kidman $3,200 for realty services provided. 27 Pays $700 on the balance related to the transaction of October 3. 30 Pays the administrative assistant $2,500 in salary for October. Instructions Complete the debit-credit analysis for each…

All types of kids will die someday no matter how hard you try to make their lives better economically; similar to the tale “Kids Who Die” by Langston Hughes. Hughes was a literary icon well known for writing about the African Americans’ experience with racism and discrimination during the 1950-1960’s. He was the leading voice of the Harlem Renaissance promoting upcoming young poets. On the other hand, he was the first black poet to support himself through his writing, according to the Poetry…

General Equipment • DHP Logistics (Frank)/ DHP Facilities (Russ Manning) o DHP confirmed that gaps exist in the DMLSS and DPAS systems. o DHA indicated that there is significant difference in asset amount for GE items (same asset on SMA books) due to purchasing and pricing of the asset. o The definition of pilferable items are component specific; whereas, SMA Navy may deem an item as pilferable and SMA Army may not deem the same item as pilferable. o Equipment in excess of the 250K…

Asset and Liability Management A credit side of a US bank’s balance sheet typically included floating-rate liabilities and long-term fixed-rate liabilities, whereas debit side consisted of floating-rate assets and long-term fixed-rate assets. Generally speaking, asset and liability management required the banks to match the economic characteristics of its cash in and out and the strategic decisions relative to interest rate exposure required banks to match their assets to liabilities…

were a way for professors around the world to teach their classes online for free. Like most others, my thoughts on online education mostly revolved around second-rate scams and suspicious for-profit institutions (I’m looking at you, DeVry). However, curiosity got ahold of me, and I quickly signed up for several courses. As it turned out, these courses were structured similarly to college classes; they consisted of weekly video lectures and a forum for collaboration between the tens…

M is the resultant internal bending moment calculated about the neutral axis of the cross section, y in this case is the thickness of the beam divided by two, and I is the moment of inertia of the cross-sectional area about the neutral axis [4]. The final equation is, Equation 5 is utilized to calculate the deflection δ of the cantilevered beam at x = L when a load is applied at a point. Since we would not applying a specific load but knowing the displacement we solved this equation for P. There…

This is where they began to know a little about each other and how they all got in to Princeton. After meeting and taking to one another Nash starts to walk to his dorm. As John got to his dorm, he looks around and decides to move his desk to the window. Then a guy name Charles Herman walks into the dorm and introduce himself as his roommate. Charles came in the dorm like he was some kind of a drunk person but he was not drunk. After that, John started to write mathematical equation on his…