Cash

Financial Statements A. Income statement and Cash flow statement Accounting profit: The process of accrual accounting recognises earned revenue and incurred expenses (Deegan & Samkin, 2013). It is the difference between the revenue earned by a company and its costs. There are certain adjustments in consideration like depreciation, interest and tax. It consists of non-cash items as well. It is also called the net income of the company. It considers both cash received/paid and to be…

analysis: 3 References 5 Ratio Analysis A) Definition and explanation of different financial term: i. Current Assets are the items on balance sheet of an entity which are in the form of either cash, equal to cash or can be converted to cash within next one year. For example: investments, foreign currency, cash, inventory, receivables and work in process(Kumar, 2014). ii. Noncurrent Assets are the long term investments of an entity which full value cannot be realised within one year of balance…

profitability. NPV includes all expected future cash flows, the time value of money, and the risk of the future cash flows. An NPV greater than zero means that the investment…

memo describes the issue of emission allowances as intangible assets and the accounting treatment to correctly show this kind of assets on the statement of cash flows. SUMMARY - Classification in the Statement of Cash Flow of the purchase made on April 2, 2010, of emission allowances from Clean Air Corp. - Classification in the Statement of Cash Flow of the sale made to Dirty Chemical Corp. for emission allowances with the vintage year of 2016. - Correct classification of the purchase and…

In general, viatical settlements are ethical. In the case of a viatical settlement, it is simply an exchange of cash today for payment in the future, although the payment depends on the death of the seller. The purchaser of the life insurance policy is bearing the risk that the insured individual will live longer than expected. Although viatical settlements are ethical, they may not be the best choice for an individual. In a Business Week article (October 31, 2005), options were examined for a…

. What financial tools do you use in this chapter? In this topic, we talk about two tools the budget and the financial statements. These protect our capital from any effect of our financial decisions, help us evaluate options, consequences and they identify potential threats. The budget is an estimate of the income and expenses that will be taken in the project. Helps evaluate projects and proposals with a purpose of finalizing this. The financial statement provides a picture of our current…

Cash Register Honesty In the workplace, employees often feel that they are over-worked and underpaid. Every employee from high school dishwashers to middle aged executives feel this way from time to time. Workers usually only consider what their employers give them. This includes their salaries, their hours, lunchbreaks, and office space. What employees usually avoid thinking about is what they are taking from the company which they work. Practically every employee steals from their place of…

The company recognises interest income on cash and money market deposits using the effective interest method (easyJet plc, 2016). The same method will be utilised to calculate both the interest income and the interest on bank and other borrowings. The formula for calculating effective rate is as follows: Where is the interest received (paid) at time t and is the total cash and deposits (total debt). As shown in exhibit 4, the effective average interest on income is equal to 0.55% and that on…

discussing whether I think they use accrual-based account or cash-based accounting I will like to define the terms. Accrual basis accounting simply means the process of recording revenue and expenses as they take place even though there has not been an exchange of cash, while, cash basis accounting as the name typifies is the opposite of accrual basis accounting. It is the process of recording revenue when cash is collected and expenses when cash is paid out, irrespective of the time scale.…

for the financial statement of all nonprofits is that the statement contains a statement of position, a statement of activities, and a statement of cash flows…