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As the turnover is spread across the year the UNDERLYING ASSETS are ALSO averaged between OPENING and closing values

cash DISCOUNT on REALISING RECEIVABLES with lower or no credit

The short answer is: Because Inventory is at COST. Inventory is not on the company's books at selling prices.

The Inventory Turnover Ratio is Cost of Goods Sold divided by average Inventory. Let's illustrate the ratio with the following amounts: Sales for the year $800,000; Cost of Goods Sold for the year $600,000; Inventory (average amount at cost during the year) $200,000. Inventory Turnover Ratio = $600,000 divided by $200,000 = 3 times. On average the inventory turned over approximately 3 times during the year.

Had we used Sales in the ratio, it would indicate that the inventory had turned over 4 times (Sales of $800,000 divided by $200,000 of Inventory), which is not the CASE. While some organizations do use Sales in the calculation, it is not logical to DIVIDE selling prices by cost. The resulting ratio is not reality. (Perhaps some use Sales because the Cost of Goods Sold number is not readily available for every company. In order to have COMPARABILITY with all companies, they may have opted to use Sales.)

HOPE IT HELPS YOU
PLZ MARK ME AS BRAINELIST
#BE BRIANLY

Usually, the amounts in PARENTHESIS SHOWS a deduction or subtraction from the PREVIOUS amount so INSTEAD of writing a (-) SIGN, we use parenthesis.

BORROWING FUNDS or SELLING ASSETS

OPERATING cashflow by WAY of change in OPENING and CLOSING payables

Pendulum is a WEIGHT SUSPENDED from a pivot so that it can swing freely. When a pendulum is displaced sideways from its resting, EQUILIBRIUM position, it is subject to a RESTORING force due to gravity that will accelerate it back TOWARD the equilibrium position.

it is TOWARDS INTEREST EARNED on EXTENDED CREDIT

The concept of compound interest is that interest is added back to the PRINCIPAL sum so that interest is earned on that added interest during the next compounding PERIOD. If you would like more INFORMATION on what compound interest is, please SEE the article what is compound interest?. For now, let's look at the formula and go through an example

FIFO and LIFO accounting are methods used in managing INVENTORY and financial matters INVOLVING the amount of money a company has to have tied up within inventory of produced goods, raw materials, parts, components, or feed stocks. They are used to manage ASSUMPTIONS of COST sheet related to inventory, stock repurchases (if purchased at different prices), and various other accounting purposes.

A defined benefit pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum (or combination thereof) on retirement that is PREDETERMINED by a formula BASED on the employee's earnings history, TENURE of service and age, rather than depending directly on individual INVESTMENT returns. Traditionally, many governmental and public entities, as well as a large number of corporations, provided defined benefit plans, sometimes as a means of compensating workers in lieu of increased PAY.

Hey mate ^_^

A condensed income statement is typically issued to external PARTIES, who are less interested in the precise sources of a COMPANY's revenues or what expenses it INCURS, and more CONCERNED with its overall perfomance.Thus bankers and investors may be interested in RECEIVING a condensed income statement.

INCOME Statement, basically, covers only the revenues and expenses of a firm/ ORGANIZATION/ CORPORATION THUS resulting to net profit or net LOSS.

The FOLLOWING will illustrate why anegative cash balance is reported as a liability instead of being reported as anegative asset amount. COMPANY X writes checks for more than its bankbalance and sends them to its vendors. ... The payee will in turn reinstate the liability amount OWED to it by Company X.

Contra REVENUE is a deduction from the gross revenue reported by a business, which results in net revenue.Contra revenue transactions are recorded in ONE or more contra revenue accounts, which usually have a debit balance (as OPPOSED to the credit balance in the typical revenue account).

if u R satisfied mark me as a BRAINLIEST

ASHOK DEBIT and PURCHASE RETURN CREDIT

LEGAL CHARGES WRITTEN IN DEBIT SIDE OF PROFIT & LOSS AC.

HOPE HELPING 4 U.....

It is a statement showing the SUMMARY of balance .ie DR /Cr of various ACCOUNT in the LEDGER.

HEY..

U R ANSWER......

IN IMAGE.

IF U WANT MORE INFORMATION.

GO TO WEBSITE :-

ACCOUNTING COACH + WHY DO SEPARATE CURRENT LIABILITY FROM LONG TERM LIABILITY.

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The displacement of a moving object is directly proportional to both velocity and TIME. Move faster. Go farther. Move longer (as in longer time). Go farther. Acceleration compounds this simple SITUATION since velocity is now also directly proportional to time. Try saying this in words and it sounds ridiculous. "Displacement is directly proportional to time and directly proportional to velocity, which is directly proportional to time." Time is a factor twice, making displacement proportional to the square of time. A car accelerating for two seconds would COVER four times the distance of a car accelerating for only one second (22 = 4). A car accelerating for three seconds would cover nine times the distance (32 = 9).

Would that it were so simple. This example only works when initial velocity is zero. Displacement is proportional to the square of time when acceleration is constant and initial velocity is zero. A true GENERAL statement would have to take into account any initial velocity and how the velocity was changing. This results in a terribly messy proportionality statement. Displacement is directly proportional to time and proportional to the square of time when acceleration is constant. A function that is both linear and square is said to be quadratic, which allows us to compact the previous statement considerably. Displacement is a quadratic function of time when acceleration is constant

Proportionality statements are useful, but not as concise as equations. We still don't know what the constants of proportionality are for this problem. One way to figure them out is to use algebra.

Start with the definition of velocity.

v̅ = ΔsΔt

Expand Δs to s − s0 and condense Δt to t.

v̅ = s − s0t

Solve for position.

s = s0 + v̅t [a]

To continue, we need to resort to a little trick known as the mean speed theorem or the Merton rule. I prefer the latter since the rule can be applied to any quantity that changes at a uniform rate — not just speed. The Merton rule was first published in 1335 at Merton College, Oxford by the English philosopher, mathematician, logician, and calculator WilliamHeytesbury. When the rate of change of a quantity is constant, the quantity changes at a uniform rate so that its average value is halfway between its initial and final values.

v̅ = ½(v + v0) [4]

Substitute the first equation of motion [1] into this equation [4] and simplify with the intent of eliminating v.

v̅ = ½[(v0 + at) + v0]  v̅ = ½(2v0 + at)  v̅ = v0 + ½at [b]

Now substitute [b] into [a] to eliminate v̅ [vee bar].

s = s0 + (v0 + ½at)t

And finally, solve for s as a function of t.

s = s0 + v0t + ½at2 [2]

This is the second equation of motion. It's written like a POLYNOMIAL — a constant term (s0), followed by a first order term (v0t ), followed by a second order term (½at2). Since the highest order is 2, it's more correct to call it a quadratic.

The displacement of a moving object is directly proportional to both velocity and time. Move faster. Go farther. Move longer (as in longer time). Go farther. Acceleration compounds this simple situation since velocity is now also directly proportional to time. Try saying this in words and it sounds ridiculous. "Displacement is directly proportional to time and directly proportional to velocity, which is directly proportional to time." Time is a factor twice, making displacement proportional to the square of time. A car accelerating for two seconds would cover four times the distance of a car accelerating for only one second (22 = 4). A car accelerating for three seconds would cover nine times the distance (32 = 9).

Would that it were so simple. This example only works when initial velocity is zero. Displacement is proportional to the square of time when acceleration is constant and initial velocity is zero. A true general statement would have to take into account any initial velocity and how the velocity was changing. This results in a terribly messy proportionality statement. Displacement is directly proportional to time and proportional to the square of time when acceleration is constant. A function that is both linear and square is said to be quadratic, which allows us to compact the previous statement considerably. Displacement is a quadratic function of time when acceleration is constant

Proportionality statements are useful, but not as concise as equations. We still don't know what the constants of proportionality are for this problem. One way to figure them out is to use algebra.

Start with the definition of velocity.

v̅ = ΔsΔt

Expand Δs to s − s0 and condense Δt to t.

v̅ = s − s0t

Solve for position.

s = s0 + v̅t [a]

To continue, we need to resort to a little trick known as the mean speed theorem or the Merton RULE. I prefer the latter since the rule can be applied to any quantity that changes at a uniform rate — not just speed. The Merton rule was first PUBLISHED in 1335 at Merton College, Oxford by the English philosopher, mathematician, logician, and calculator WilliamHeytesbury. When the rate of change of a quantity is constant, the quantity changes at a uniform rate so that its average value is halfway between its initial and FINAL values.

v̅ = ½(v + v0) [4]

Substitute the first equation of motion [1] into this equation [4] and simplify with the intent of eliminating v.

v̅ = ½[(v0 + at) + v0]  v̅ = ½(2v0 + at)  v̅ = v0 + ½at [b]

Now substitute [b] into [a] to eliminate v̅ [vee bar].

s = s0 + (v0 + ½at)t

And finally, solve for s as a function of t.

s = s0 + v0t + ½at2 [2]

This is the second equation of motion. It's written like a polynomial — a constant term (s0), followed by a first order term (v0t ), followed by a second order term (½at2). Since the highest order is 2, it's more correct to call it a quadratic.

NO ...
I THINK IS..
A ASSET OF THE BUSINESS..

BCOZ FIRM PAID SECURITY DEPOSIT IN ADVANCE.

SO IT'S A ASSET OF BUSINESS.

HOPE YOU UNDERSTAND...

HEY.
U R ANSWER...

NOTES RECEIVABLE IS AN ASSET OF BUSINESS.
BANK OR OTHER ORGANIZATION THAT HOLDS A WRITTEN PROMISSORY NOTE FROM ANOTHER PARTY.

NOTES RECEIVABLE REPORT IN A CURRENT ASSET OF THE BUSINESS.

DRAWING AC DR
TO CASH AC..

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HEY..

U R ANSWER....

IN A PHOTO...

HEY...

DOWNLOAD

→ ACCOUNTING DICTIONARY ←

APP

IT IS VERY HELPFULL FOR

UNDERSTAND ACCOUNT..

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The Present Value of an entity can be defined as the present worth of a prospective amount of money or a stream of cash flows with a specified return rate. The Present Value is conversely related to the discount rate. Thus, a higher discount rate implies a LOWER present value and vice versa. Accurate DETERMINATION of cash flows is, therefore, the key to appropriately valuing future cash flows, be it earnings or obligations.

The calculation of the Present Value holds extreme importance in different financial calculations like Net Present Value, spot rates, bond yields, and pension obligations. The apposite definition for Present Value (PV) is given as the CURRENT value of one or higher future cash payments which are discounted at a reasonable interest rate.

Calculation (FORMULA)

Present Value = Future Cash Flow / (1 + Required Rate of Return)N

N – a number of years you have to wait for the cash flow;

"Required Rate of Return" is named "discount rate".

"(1 + Required Rate of Return)N" is named "discounting factor".

Calculating the Present Value

Generally, there are three factors which influence the calculation of the Present Value:

The size of the cash flow

The future cash flow implies the size of the cash which is expected to be received. The future cash flow and the present value are related directly. A larger future cash flow implies a higher present value.

The risk involved in cash flow

With rising uncertainty, the INVESTOR anticipating the receipt of a cash flow has to presume higher risk. This presumed level of high risk lowers the value that should be paid at present for the future cash flow. The “risk” involved is calculated by the rate of return which you might require from another investment aimed at generating cash flow with the same risk level.

The waiting period involved in cash flow

A longer waiting period lowers the value of cash flow. This reduction in the present value of a cash flow is accrued to two reasons –

a. The money which has been invested could be invested in some other project which would earn you interest during the years which you have been waiting.

b. If, in case, you are not sure about getting the expected cash flow , you will have to presume more risk with time passing by thereby lowering the value that would be paid by someone for that future cash flow

The concept of an arm's length transaction ASSURES that both PARTIES in the deal are acting in their own self-interest and are not subject to any PRESSURE or DURESS from the other party. It also assures third parties that there is no collusion between the buyer and seller.

HEY

THE MONETARY UNIT ASSUMPTION IS THAT IN THE LONG RUN , THE DOLLAR ARE STABLE.

IT DOES NOT LESS HIS PURCHASING POWER.

THE ASSUMPTION ALLOW TO ACCOUTANTS..

HOWEVER THE ASSUMPTION IS THAT THE PURCHASING POWER OF DOLLAR IS NOT CHANGED.

HOPE IT HELPS YOU....

To CHECK the extensions on a purchase invoice means to verify that the number of units of each item multiplied by its UNIT cost agrees with the total dollar amount for each item. ... To FOOT the invoice means to add up the EXTENDED costs and verify the total with the amount appearing as the total on the invoice

It is USED for DISCOUNTING PRICE

What's this QUESTION not UNDERSTANDING what

HEY....

U R ANSWER ♠....

ASSET AC DR
TO PARTNER CAPITAL AC

HOPE IT HELPS YOU......

The controller is RESPONSIBLE for the company's financial statements, general ledger, cost accounting, payroll, accounts PAYABLE, accounts receivable, BUDGETING, tax compliance, and various special analyses. ... OFTEN the controller reports to the chief financial OFFICER (CFO).

The Present Value of an entity can be defined as the present worth of a prospective amount of money or a stream of cash flows with a specified return rate. The Present Value is conversely related to the discount rate. Thus, a higher discount rate implies a lower present value and vice versa. Accurate determination of cash flows is, therefore, the key to appropriately valuing FUTURE cash flows, be it earnings or obligations.

The calculation of the Present Value holds extreme importance in different financial calculations like Net Present Value, spot rates, bond yields, and pension obligations. The apposite definition for Present Value (PV) is given as the current value of one or higher future cash payments which are discounted at a reasonable INTEREST rate.

Calculation (FORMULA)

Present Value = Future Cash Flow / (1 + Required Rate of Return)N

N – a number of years you have to wait for the cash flow;

"Required Rate of Return" is named "discount rate".

"(1 + Required Rate of Return)N" is named "discounting factor".

Calculating the Present Value

Generally, there are three factors which influence the calculation of the Present Value:

The size of the cash flow

The future cash flow implies the size of the cash which is expected to be received. The future cash flow and the present value are related directly. A larger future cash flow implies a higher present value.

The risk involved in cash flow

With rising uncertainty, the investor anticipating the receipt of a cash flow has to presume higher risk. This presumed level of high risk lowers the value that should be paid at present for the future cash flow. The “risk” involved is calculated by the rate of return which you might require from another investment aimed at GENERATING cash flow with the same risk level.

The waiting period involved in cash flow

A longer waiting period lowers the value of cash flow. This reduction in the present value of a cash flow is accrued to two reasons –

a. The money which has been invested could be invested in some other project which would earn you interest during the years which you have been waiting.

b. If, in case, you are not sure about getting the expected cash flow , you will have to presume more risk with time passing by thereby lowering the value that would be paid by someone for that future cash flow.

PLEASE MARK MY ANSWER AS A BRAINLIEST ANSWER.

There can be several REASONS for a business to change its chart of accounts. One reason for changing the chart of accounts is to better match how the business is ORGANIZED. Perhaps the chart of accounts was established when the business was much smaller (fewer products, fewer customers, fewer managers). Now the company's more sophisticated operations require more detailed reporting that is segmented by processes and/or by each manager's area of responsibility.

Another reason for changing the chart of accounts is a company's decision to acquire and install a NEW computerized system for controlling its operations. The new system's general ledger might result in a chart of accounts which is different from the PREVIOUS chart of accounts.


HOPE IT HELPS YOU

#BE BRAINLY

THEN RECTIFY THIS ERROR .

CASH AC DR
TO SALE OF OLD MACHINARY AC CR


HOPE HELPING 4 U... FREIND....

The displacement of a moving object is directly proportional to both velocity and time. Move faster. Go farther. Move longer (as in longer time). Go farther. Acceleration compounds this simple situation since velocity is now also directly proportional to time. Try saying this in words and it sounds ridiculous. "Displacement is directly proportional to time and directly proportional to velocity, which is directly proportional to time." Time is a factor twice, MAKING displacement proportional to the square of time. A car accelerating for two seconds would cover four times the distance of a car accelerating for only one second (22 = 4). A car accelerating for three seconds would cover nine times the distance (32 = 9).

Would that it were so simple. This example only works when initial velocity is zero. Displacement is proportional to the square of time when acceleration is constant and initial velocity is zero. A true general statement would have to take into account any initial velocity and how the velocity was changing. This results in a terribly messy proportionality statement. Displacement is directly proportional to time and proportional to the square of time when acceleration is constant. A function that is both linear and square is said to be quadratic, which allows US to compact the previous statement considerably. Displacement is a quadratic function of time when acceleration is constant

Proportionality statements are useful, but not as concise as equations. We still don't know what the constants of proportionality are for this problem. One way to figure them out is to use algebra.

Start with the DEFINITION of velocity.

v̅ = ΔsΔt

Expand Δs to s − s0 and condense Δt to t.

v̅ = s − s0t

Solve for position.

s = s0 + v̅t [a]

To continue, we need to resort to a little trick known as the mean speed theorem or the Merton rule. I prefer the latter since the rule can be applied to any quantity that changes at a uniform rate — not just speed. The Merton rule was FIRST published in 1335 at Merton College, Oxford by the English philosopher, mathematician, logician, and calculator WilliamHeytesbury. When the rate of change of a quantity is constant, the quantity changes at a uniform rate so that its average value is halfway between its initial and final values.

v̅ = ½(v + v0) [4]

Substitute the first equation of motion [1] into this equation [4] and simplify with the intent of eliminating v.

v̅ = ½[(v0 + at) + v0]  v̅ = ½(2v0 + at)  v̅ = v0 + ½at [b]

Now substitute [b] into [a] to eliminate v̅ [vee bar].

s = s0 + (v0 + ½at)t

And finally, solve for s as a function of t.

s = s0 + v0t + ½at2 [2]

This is the second equation of motion. It's written like a polynomial — a constant term (s0), followed by a first order term (v0t ), followed by a second order term (½at2). Since the highest order is 2, it's more correct to call it a quadratic.

What do U WNNA ASK ???

It is a CAPITAL RESERVE

Positive and Negative CASHFLOW. Positive cash flow is the receipt of more cash than was paid out; negative cash flow RESULTS from paying out more cash than receiving. ... Negative cash flow property is DEFINED as property that takes AWAY more money than you earn as rental INCOME

If cash INFLOWS in any activity exceeds cash outflows from that activity, it is positive cash FLOW. In case cash outflow exceeds inflow it is NEGATIVE cash flow.
For eg, if the company has sold plant and MACHINERY worth RS. 10,00,000 (cash inflow) and purchased a land worth Rs. 12,00,000 (outflow) during the same period, then its total flow of cash from investing activity will be Rs 2,00,000, which is negative cash flow as outflows exceed inflows of cash.