An item on the cash flow statement belongs in the investing activities section if it is the result of any gains (or losses) from investments in financial markets and operatingsubsidiaries. An investing activity also refers to cash spent on investments in capital assets such asproperty, ...
Depreciation is the process of allocating to expense the cost of a plant asset over its useful life in a rational and systematic manner. It affects the balance sheet through accumulated depreciation and affects the income statement through depreciation expense. Depreciation applies to three classes of...
The financing activity in the cash flow statement focuses on how a firm raisescapitaland pays it back to investors throughcapital markets. These activities also includepaying cash dividends, adding or changing loans, or issuing and selling more stock. This section of the statement of cash...
Specifically, with respect to the preparation of a statement of cash flows, the FFSTF recommended that the framework established by Statement of Financial Accounting Standard (SFAS) NO. 95 should be adhered to by agricultural entities. This article explains and discusses the requirements of SFAS No...
Cash 104,000 An adjusting entry is required to recognize interest expense and interest payable at fiscal year end. In addition, interest expense will be reported under “other expenses and losses” in the income statement. Sales Taxes Payable ...
The good news is you have already been performing the first part of horizontal analysis without realizing it when you were preparing the statement of cash flows. Horizontal analysis consists of 2 things: Dollar amount of change (calculated as Current Year amount – Previous Year amount) ...
A Financial statement is a summary of the financial performance of a company. The three main reports in a financial statement are the Balance Sheet, Income Statement and the Cash Flows statement. One excellent way of analyzing a financial statement is through financial ratios. A ratio is quite ...
The accuracy of the statement of cash flows can be proved by comparing the cash provided by operating activities with the change in the cash balance. a) True b) False True or False: Difference between business income for tax ...
aWith vertical analysis investors are analyzing the structure and proportion of parts in the financial statements and analyze the logical relations within and between parts. Vertical analyses primarily analyze balance sheet parts, profit and loss statement and statement of cash flows. In the vertical ...
. Responsibilities include: (1) maintaining the accounting records and an adequate system of internal control and (2) preparing financial statement, tax returns, and internal reports. The treasurer has custody of the corporation’s funds and is responsible for maintaining the company’s cash ...