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Q. Explain about Stockholders equity?
Stockholders' equity demonstrates the owners' interest in the business. This interest is equivalent to the amount contributed plus the income left in the business. The items in stockholders' equity in The Home Depot's balance sheet are paid-in capital (including common stock) and retained earnings. Paid-in capital demonstrates the capital paid into the company as the owners' investment. Retained earnings demonstrate the cumulative income of the company less the amounts distributed to the owners in the form of dividends. Cumulative translation adjustments consequence from translating foreign currencies into US dollars. The next section demonstrates how two categories on the classified balance sheet relate to each other. Together they assist reveal a company's short-term debt-paying ability.
Q. Explain accrual basis of accounting? In certain circumstances companies may perhaps use the cash basis for income tax purposes. All through the text we use the accrual basis
Q. Last-in first-out inventory? LIFO (last-in first-out): Ending inventory contains of the oldest costs. LIFO presumes that the costs of the most recent purchases are the first
Q. What is Net realizable value? Companies must not carry goods in inventory at more than their net realizable value. Net realizable value is the approximate selling price of a
Define Accounting. Briefly explain the accounting concepts which guide the accountant at the recording stage.
Its depends on the credit period of the company i.e. A company credit period 30 days 85 of the debtors collection should be recovered with in credit period. We can say the Effectiv
What is the full disclosure principle
Q. What do you mean by single proprietorship? A single proprietorship is a non incorporated business owned by an individual and often managed by that same person. Single propri
The Olympic Company has an accounts receivable balance at December 31, 2010 of $159,548.00. The existing balance in the Allowance for Uncollectible Accounts was a credit of $2,563
Q. Explain about financial statement? The income statement is the statement of retained earnings the balance sheet and the statement of cash flows of Metro Courier Inc demonstr
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