Asset
•Download as PPTX, PDF•
0 likes•231 views
Assets are resources with monetary value that are owned by a business, including tangible objects and intangible rights. Assets provide future benefits and services to help produce other assets or settle liabilities. There are different methods to value assets, such as historical cost which records the original price, and replacement cost which estimates the current cost to replace the asset. For example, fixed assets valued at 20 crore rupees in 2000-01 using historical cost, but were valued at 40 crore rupees in 2010-11 using replacement cost due to market changes.
Report
Share
Report
Share
Recommended
Non current assets theory
Non-current assets are resources held by a business that will not be converted to cash within one accounting period and include property, plant, equipment, investments, and intangible assets. Non-current assets have a limited life due to factors like wear and tear, technical obsolescence, and commercial obsolescence. Capital expenditures significantly increase the value of a non-current asset while revenue expenditures only maintain an asset's useful life.
SAP
This document outlines the steps to set up a company in an accounting system, including defining the company code, assigning the code to a chart of accounts and business areas, setting up account groups and number ranges, and assigning fiscal year and posting period variants to the company code.
Mother's day blog phoolwala.com
Deliver same day flowers cakes gifts to India,Birthday Gifts to India USA, UK and midnight express birthday cakes gifts delivery by India Florist Phoolwala.com
Valuation of fixed assets
1. The gross and net book values of fixed assets at the beginning and end of the period, along with additions, disposals, and other movements.
2. The depreciation methods and rates used for each class of fixed asset.
3. The amount of borrowing costs capitalized during the period for qualifying assets.
4. Any changes to accounting estimates like useful lives or residual values that affect the calculation of depreciation.
Ind as 16
PPE are tangible assets held for use that are expected to be used for more than one period. They are initially recognized at cost and then depreciated over their useful lives. Cost includes purchase price and any costs to prepare the asset for use. PPE can be accounted for using either the cost model, where assets are carried at cost less accumulated depreciation, or the revaluation model, where assets are carried at fair value less subsequent depreciation. Under the revaluation model, increases in value are credited to other comprehensive income and decreases charged to profit or loss. Note disclosures include carrying amounts, depreciation methods, useful lives, and details of any revaluations.
q2.4) Listed are elements of the financial statements discussed in t.pdf
q2.4) Listed are elements of the financial statements discussed in this chapter. Match each
element with the descriptions (use each as many times as necessary) (Click the icon to view the
elements.) Debts of the company Economic resources with future benefit Elements V Inflows of
assets from delivering or producing goods or services | Things of value a company owns VThe
residual interest in the assets of an entity that remains after deducting its liabilities | The
difference between what the company has and what the company owes V The owners\' interest in
the company | outflows or using up of assets from delivering or producing goods and services 3
4 a. Assets b. Liabilities c. Shareholders\' equity d. Revenues e. Expenses Costs that have no
future value PrintDone 10. The amount the company owes | Sales
Solution
Debts of a company
Liabilities
Economic resources with future value
Assets
inflows of asset from delivering products or services
Revenue
Things of value a company owns
Assets
A residential interest in the assets of the entity that remains after deducting its liabilities
Shareholders equity
The difference between what company has and what company owes
Shareholders equity
The owners interest in the company
Shareholders equity
Outflows or using up of assets from delivering or producing goods and services
Expenses
Costs that have no future value
Expenses
The amount the company owes
Liabilities
Sales
Revenues
Debts of a company
Liabilities
Economic resources with future value
Assets
inflows of asset from delivering products or services
Revenue
Things of value a company owns
Assets
A residential interest in the assets of the entity that remains after deducting its liabilities
Shareholders equity
The difference between what company has and what company owes
Shareholders equity
The owners interest in the company
Shareholders equity
Outflows or using up of assets from delivering or producing goods and services
Expenses
Costs that have no future value
Expenses
The amount the company owes
Liabilities
Sales
Revenues.
Lecture 7 Income Statement Rw
The document discusses key financial statements and concepts:
- The income statement measures performance over a period by comparing revenues to expenses, yielding net income. It uses accrual accounting to match revenues with the expenses to generate those revenues.
- The balance sheet shows a company's financial position at a point in time by listing its assets, liabilities, and equity. The cash flow statement explains changes in cash from operating, investing, and financing activities.
- Key income statement components include revenues, expenses, and net income. Revenue is recognized following certain criteria and on an accrual basis, as is the recording of expenses according to the matching principle.
Lecture 7 income statement rw (2)
The document discusses key financial statements and concepts:
- The income statement measures performance over a period by comparing revenues to expenses, yielding net income. It uses accrual accounting to match revenues with the expenses to generate those revenues.
- The balance sheet shows a company's financial position at a point in time by listing its assets, liabilities, and equity. The cash flow statement explains changes in cash from operating, investing, and financing activities.
- Key income statement components include revenues, expenses, and net income. Revenue is recognized following certain criteria and on an accrual basis, as is the recording of expenses according to the matching principle.
Recommended
Non current assets theory
Non-current assets are resources held by a business that will not be converted to cash within one accounting period and include property, plant, equipment, investments, and intangible assets. Non-current assets have a limited life due to factors like wear and tear, technical obsolescence, and commercial obsolescence. Capital expenditures significantly increase the value of a non-current asset while revenue expenditures only maintain an asset's useful life.
SAP
This document outlines the steps to set up a company in an accounting system, including defining the company code, assigning the code to a chart of accounts and business areas, setting up account groups and number ranges, and assigning fiscal year and posting period variants to the company code.
Mother's day blog phoolwala.com
Deliver same day flowers cakes gifts to India,Birthday Gifts to India USA, UK and midnight express birthday cakes gifts delivery by India Florist Phoolwala.com
Valuation of fixed assets
1. The gross and net book values of fixed assets at the beginning and end of the period, along with additions, disposals, and other movements.
2. The depreciation methods and rates used for each class of fixed asset.
3. The amount of borrowing costs capitalized during the period for qualifying assets.
4. Any changes to accounting estimates like useful lives or residual values that affect the calculation of depreciation.
Ind as 16
PPE are tangible assets held for use that are expected to be used for more than one period. They are initially recognized at cost and then depreciated over their useful lives. Cost includes purchase price and any costs to prepare the asset for use. PPE can be accounted for using either the cost model, where assets are carried at cost less accumulated depreciation, or the revaluation model, where assets are carried at fair value less subsequent depreciation. Under the revaluation model, increases in value are credited to other comprehensive income and decreases charged to profit or loss. Note disclosures include carrying amounts, depreciation methods, useful lives, and details of any revaluations.
q2.4) Listed are elements of the financial statements discussed in t.pdf
q2.4) Listed are elements of the financial statements discussed in this chapter. Match each
element with the descriptions (use each as many times as necessary) (Click the icon to view the
elements.) Debts of the company Economic resources with future benefit Elements V Inflows of
assets from delivering or producing goods or services | Things of value a company owns VThe
residual interest in the assets of an entity that remains after deducting its liabilities | The
difference between what the company has and what the company owes V The owners\' interest in
the company | outflows or using up of assets from delivering or producing goods and services 3
4 a. Assets b. Liabilities c. Shareholders\' equity d. Revenues e. Expenses Costs that have no
future value PrintDone 10. The amount the company owes | Sales
Solution
Debts of a company
Liabilities
Economic resources with future value
Assets
inflows of asset from delivering products or services
Revenue
Things of value a company owns
Assets
A residential interest in the assets of the entity that remains after deducting its liabilities
Shareholders equity
The difference between what company has and what company owes
Shareholders equity
The owners interest in the company
Shareholders equity
Outflows or using up of assets from delivering or producing goods and services
Expenses
Costs that have no future value
Expenses
The amount the company owes
Liabilities
Sales
Revenues
Debts of a company
Liabilities
Economic resources with future value
Assets
inflows of asset from delivering products or services
Revenue
Things of value a company owns
Assets
A residential interest in the assets of the entity that remains after deducting its liabilities
Shareholders equity
The difference between what company has and what company owes
Shareholders equity
The owners interest in the company
Shareholders equity
Outflows or using up of assets from delivering or producing goods and services
Expenses
Costs that have no future value
Expenses
The amount the company owes
Liabilities
Sales
Revenues.
Lecture 7 Income Statement Rw
The document discusses key financial statements and concepts:
- The income statement measures performance over a period by comparing revenues to expenses, yielding net income. It uses accrual accounting to match revenues with the expenses to generate those revenues.
- The balance sheet shows a company's financial position at a point in time by listing its assets, liabilities, and equity. The cash flow statement explains changes in cash from operating, investing, and financing activities.
- Key income statement components include revenues, expenses, and net income. Revenue is recognized following certain criteria and on an accrual basis, as is the recording of expenses according to the matching principle.
Lecture 7 income statement rw (2)
The document discusses key financial statements and concepts:
- The income statement measures performance over a period by comparing revenues to expenses, yielding net income. It uses accrual accounting to match revenues with the expenses to generate those revenues.
- The balance sheet shows a company's financial position at a point in time by listing its assets, liabilities, and equity. The cash flow statement explains changes in cash from operating, investing, and financing activities.
- Key income statement components include revenues, expenses, and net income. Revenue is recognized following certain criteria and on an accrual basis, as is the recording of expenses according to the matching principle.
Chap 3 Fin Rep Prop Plant and Equip - IAS 16.ppt
IAS 16 provides guidance on accounting for property, plant, and equipment. It requires that such assets be initially measured at cost and subsequently measured either using the cost model (cost less accumulated depreciation and impairment losses) or revaluation model. The standard specifies how to recognize, measure, depreciate, and disclose information related to an entity's property, plant, and equipment.
Ind as 16
This document discusses accounting for property, plant, and equipment (PPE) under Indian Accounting Standard (Ind AS) 16. It covers topics such as the initial recognition and measurement of PPE, the cost model and revaluation model for subsequent measurement, depreciation, and impairment. It also provides examples of accounting entries for revaluation of PPE and disclosure requirements related to PPE under Ind AS 16.
Financial Management.pptx
Financial management involves planning, directing, monitoring, and organizing the monetary resources of an organization. It helps managers understand profitability ratios like profit/volume ratios and return on assets.
An operating budget is a detailed projection of estimated income and expenses over a given period, usually one year. Preparing an operating budget involves forecasting materials, labor, staffing, expenses, and revenues to calculate the total budgeted expenditure and projected profit. The budget helps monitor and control activities but may not be 100% accurate.
Depreciation is the gradual conversion of a capital asset's cost into an expense over its useful life. Straight-line and reducing balance are methods to calculate depreciation annually. Financial concepts like future value,
Topic 2 financial_20statement_1_
1. The financial statements document includes an income statement, balance sheet, and statement of cash flows. The income statement shows profitability over a period of time, the balance sheet outlines assets, liabilities, and equity at a point in time, and the statement of cash flows shows cash inflows and outflows.
2. The income statement displays revenue, expenses, and profit. The balance sheet lists current assets, fixed assets, liabilities, and equity. Current assets include cash, receivables, and inventory. Liabilities include current and long-term debt. Equity encompasses preferred stock and common stock.
3. Financial statements provide information about a company's performance and financial position to both internal and external
Topic 2 financial_20statement_1_
1. The financial statements document includes an income statement, balance sheet, and statement of cash flows. The income statement shows profitability over a period of time, the balance sheet outlines assets, liabilities, and equity at a point in time, and the statement of cash flows shows cash inflows and outflows.
2. The income statement displays revenue, expenses, and profit. The balance sheet lists current assets, fixed assets, liabilities, and equity. Current assets include cash, receivables, and inventory. Liabilities include current and long-term debt. Equity encompasses preferred stock and common stock.
3. Financial statements provide information about a company's performance and financial position to both internal and external
Introduction-to-Financial-Statements.pptx
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, op
understanding the accounting equation.pptx
The document discusses the accounting equation and its components - assets, liabilities, and owner's equity. It defines each term and provides examples. It also summarizes 10 sample transactions to demonstrate how the accounting equation is impacted by business activities like purchases, sales, expenses and owner withdrawals. Understanding the accounting equation and how it is affected is important for financial analysis, decision making, and regulatory compliance.
Topic 2 2_ (2) finance
The document discusses the needs and purposes of key financial statements including the income statement, balance sheet, and statement of cash flows. It explains the components and calculations of these statements. It also describes common financial ratios used in analysis of statements, such as liquidity, profitability, asset management, and leverage ratios. These ratios are used to evaluate a firm's performance and financial position over time and in comparison to other companies.
Ff topic2 analysis_of_financial_statement_and_cash_flow
This document provides an overview of financial statement analysis and cash flow analysis. It defines key financial statements including the balance sheet, income statement, and statement of cash flows. It explains the purpose of financial statement analysis for both internal and external users. The document then describes various items and terms for each financial statement like assets, liabilities, equity, revenues, and expenses. It also introduces several important financial ratios to measure a company's liquidity, asset management, profitability, leverage, and market value. Formulas are provided for calculating common ratios.
Which of the following is an advantage of corporations relative to.docx
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
Reduced legal liability for investors.
Harder to transfer ownership.
Lower taxes.
Most common form of organization.
The group of users of accounting information charged with achieving the goals of the business is its
managers.
auditors.
investors.
creditors.
Which of the following financial statements is concerned with the company at a point in time?
Retained Earnings statement.
Income statement.
Statement of cash flows.
Balance sheet.
An income statement
reports the changes in assets, liabilities, and stockholders’ equity over a period of time.
presents the revenues and expenses for a specific period of time.
reports the assets, liabilities, and stockholders’ equity at a specific date.
summarizes the changes in retained earnings for a specific period of time.
The most important information needed to determine if companies can pay their current obligations is the
relationship between short-term and long-term liabilities.
projected net income for next year.
net income for this year.
relationship between current assets and current liabilities.
A liquidity ratio measures the
ability of a company to survive over a long period of time.
short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash.
percentage of total financing provided by creditors.
income or operating success of a company over a period of time.
The convention of consistency refers to consistent use of accounting principles
within industries.
among accounting periods.
among firms.
throughout the accounting periods.
Horizontal analysis is also known as
linear analysis.
vertical analysis.
common size analysis.
trend analysis.
Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
to determine the amount and/or percentage increase or decrease that has taken place.
that has been arranged from the highest number to the lowest number.
that has been arranged from the lowest number to the highest number.
to determine which items are in error.
Vertical analysis is a technique that expresses each item in a financial statement
starting with the highest value down to the lowest value.
as a percent of the item in the previous year.
as a percent of a base amount.
in dollars and cents.
Process costing is used when
production is aimed at filling a specific customer order.
dissimilar products are involved.
costs are to be assigned to specific jobs.
the production process is continuous.
An important feature of a job order cost system is that each job
has its own distinguishing characteristics.
must be completed before a new job is accepted.
consists of one unit of output.
must be similar to previous jobs completed.
In a process cost system, product costs are summarized:
on job cost sheets.
w.
Accounting - Part 1
Accounting involves identifying, measuring, and communicating the economic information of a business entity to its users. It records transactions and events to determine the entity's financial position. Accounting identifies assets, liabilities, and equity through a system of debits and credits according to the dual aspect concept. The accounting process provides information to owners, managers, creditors, government, and others for decision making.
M6 L1 Financial Documents Used in a Small Business
The document discusses key financial documents used in small businesses: the balance sheet, income statement, and statement of cash flows. It provides explanations of what each statement shows and the types of financial information included in them. The balance sheet presents a company's assets, liabilities, and owner's equity at a point in time. The income statement compares revenues and expenses over a period of time to determine profit/loss. The statement of cash flows tracks a company's cash inflows and outflows. Together these statements provide a comprehensive view of a company's financial health and performance.
Which of the following is an advantage of corporations relative to.docx
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
Lower taxes.
Most common form of organization.
Reduced legal liability for investors.
Harder to transfer ownership.
The group of users of accounting information charged with achieving the goals of the business is its
auditors.
investors.
creditors.
managers.
Which of the following financial statements is concerned with the company at a point in time?
Statement of cash flows.
Retained Earnings statement.
Balance sheet.
Income statement.
An income statement
presents the revenues and expenses for a specific period of time.
reports the changes in assets, liabilities, and stockholders’ equity over a period of time.
reports the assets, liabilities, and stockholders’ equity at a specific date.
summarizes the changes in retained earnings for a specific period of time.
The most important information needed to determine if companies can pay their current obligations is the
projected net income for next year.
relationship between current assets and current liabilities.
relationship between short-term and long-term liabilities.
net income for this year.
A liquidity ratio measures the
income or operating success of a company over a period of time.
ability of a company to survive over a long period of time.
percentage of total financing provided by creditors.
short-term ability of a company to pay its maturing obligations and to meet unexpected needs for
cash.
The convention of consistency refers to consistent use of accounting principles
among firms.
among accounting periods.
throughout the accounting periods.
within industries.
Horizontal analysis is also known as
vertical analysis.
trend analysis.
linear analysis.
common size analysis.
Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
to determine the amount and/or percentage increase or decrease that has taken place.
that has been arranged from the lowest number to the highest number.
that has been arranged from the highest number to the lowest number.
to determine which items are in error.
Vertical analysis is a technique that expresses each item in a financial statement
starting with the highest value down to the lowest value.
in dollars and cents.
as a percent of the item in the previous year.
as a percent of a base amount.
Process costing is used when
production is aimed at filling a specific customer order.
dissimilar products are involved.
the production process is continuous.
costs are to be assigned to specific jobs.
An important feature of a job order cost system is that each job
has its own distinguishing characteristics.
must be completed before a new job is accepted.
consists of one unit of output.
must be similar to previous jobs completed.
In a process cost system, product costs are summarized:
after each unit is produced..
Accountancy2
The document defines key accounting terms and concepts:
1. It describes a business entity as a specific identifiable enterprise, and explains the concepts of separate business and owner identities.
2. It defines a transaction as an event involving an exchange of value between two or more entities, such as purchases, receipts, or payments.
3. It explains key accounting equations like assets = liabilities + capital/equity, and the dual aspect principle where every transaction has two equal and opposite accounting aspects.
Balance sheet.pdf
This document provides an overview of key concepts related to balance sheets, including:
- Assets are classified as current, long-term, property/equipment, and intangible
- Liabilities are classified as current or long-term
- Owners' equity includes contributed capital and retained earnings
- Transactions affect the accounting equation by increasing or decreasing specific balance sheet accounts to maintain the balance sheet identity of assets = liabilities + owners' equity.
Basic Accounting terms and terminology upload.pptx
The document defines key accounting and business terms related to debtors, creditors, assets, liabilities, expenses, income, and transactions. It explains that debtors owe money to a business for goods or services purchased on credit, while creditors are owed money by a business for goods or services provided on credit. Assets are items of value owned by a business, and can be classified as fixed, current, tangible, or intangible. Liabilities are amounts owed by a business, while expenses are costs that reduce income, which is defined as revenue minus expenses.
Fixed assets -tangible
Fixed tangible assets include land, buildings, plant and machinery, equipment, furniture, vehicles, and leasehold improvements. The cost of fixed assets includes the purchase price plus any additional expenditures incurred until the asset is ready for its intended use. Fixed assets are depreciated over their useful lives to match the cost to the periods benefited from use. Depreciation methods include straight line and written down value and aim to reflect the asset's declining value each year.
C2
The document discusses financial statements, including the income statement, balance sheet, statement of retained earnings, and statement of cash flows. It provides details on the key components and purposes of each statement. The income statement shows a company's revenues, expenses and profits over a period of time. The balance sheet outlines a company's assets, liabilities, and shareholders' equity at a point in time. The statement of retained earnings shows how much earnings have been retained in the business each year. And the statement of cash flows provides information on a company's cash inflows and outflows from operating, investing, and financing activities.
Share based payment best presentation for students
This transaction will be accounted for as an equity-settled share-based payment transaction in the company's financial statements as follows:
On June 1, 2010 (date of grant):
Inventory 6,000,000
Share capital/Reserves 6,300,000
(Inventory is measured at fair value of goods received)
On December 3, 2012 (date of sale):
Cash 8,000,000
Inventory 6,000,000
Gain on sale of inventory 2,000,000
(Inventory is derecognized at original cost on date of sale)
No expense is recognized in the income statement as this is an equity-settled transaction. The difference between fair value of shares granted and value
Basicsofaccounting 120223232525-phpapp01
This document provides an introduction to key accounting concepts and terms. It defines accounting as the process of identifying, recording, classifying, summarizing, and communicating financial information. The key concepts covered include the accounting equation, double-entry bookkeeping system, accounting cycle, journals, ledgers, debits and credits, and types of accounts. Examples are provided to illustrate basic accounting transactions and how they are recorded using debits and credits according to the rules of double-entry bookkeeping.
marketing channels
This document summarizes different types of marketing channels. It describes vertical channels as professionally managed networks with centralized programming to achieve economies and market impact. Vertical channels can be administrative, contractual, or corporate. Horizontal channels involve two or more companies joining together to exploit opportunities, such as through syndicates or associated companies. The document also provides examples of different common marketing channels including ones using sales forces, retailers, wholesalers, and agents.
The human resource challenges for higher education
The document discusses the human resource challenges facing higher education in India. It notes that while India has over 700 universities and 35,000 colleges, the quality of education remains low, with two-thirds of institutions below standard. Key challenges include a lack of access, with only 30% of the eligible population currently enrolled, as well as shortages of qualified faculty. Research output is also falling short, with just 4% of research expenditures coming from universities compared to 17% in the US. The document examines challenges around equity and access for women, rural populations, and lower castes, as well as a decline in traditional fields of study and over-reliance on reservations in admissions.
More Related Content
Similar to Asset
Chap 3 Fin Rep Prop Plant and Equip - IAS 16.ppt
IAS 16 provides guidance on accounting for property, plant, and equipment. It requires that such assets be initially measured at cost and subsequently measured either using the cost model (cost less accumulated depreciation and impairment losses) or revaluation model. The standard specifies how to recognize, measure, depreciate, and disclose information related to an entity's property, plant, and equipment.
Ind as 16
This document discusses accounting for property, plant, and equipment (PPE) under Indian Accounting Standard (Ind AS) 16. It covers topics such as the initial recognition and measurement of PPE, the cost model and revaluation model for subsequent measurement, depreciation, and impairment. It also provides examples of accounting entries for revaluation of PPE and disclosure requirements related to PPE under Ind AS 16.
Financial Management.pptx
Financial management involves planning, directing, monitoring, and organizing the monetary resources of an organization. It helps managers understand profitability ratios like profit/volume ratios and return on assets.
An operating budget is a detailed projection of estimated income and expenses over a given period, usually one year. Preparing an operating budget involves forecasting materials, labor, staffing, expenses, and revenues to calculate the total budgeted expenditure and projected profit. The budget helps monitor and control activities but may not be 100% accurate.
Depreciation is the gradual conversion of a capital asset's cost into an expense over its useful life. Straight-line and reducing balance are methods to calculate depreciation annually. Financial concepts like future value,
Topic 2 financial_20statement_1_
1. The financial statements document includes an income statement, balance sheet, and statement of cash flows. The income statement shows profitability over a period of time, the balance sheet outlines assets, liabilities, and equity at a point in time, and the statement of cash flows shows cash inflows and outflows.
2. The income statement displays revenue, expenses, and profit. The balance sheet lists current assets, fixed assets, liabilities, and equity. Current assets include cash, receivables, and inventory. Liabilities include current and long-term debt. Equity encompasses preferred stock and common stock.
3. Financial statements provide information about a company's performance and financial position to both internal and external
Topic 2 financial_20statement_1_
1. The financial statements document includes an income statement, balance sheet, and statement of cash flows. The income statement shows profitability over a period of time, the balance sheet outlines assets, liabilities, and equity at a point in time, and the statement of cash flows shows cash inflows and outflows.
2. The income statement displays revenue, expenses, and profit. The balance sheet lists current assets, fixed assets, liabilities, and equity. Current assets include cash, receivables, and inventory. Liabilities include current and long-term debt. Equity encompasses preferred stock and common stock.
3. Financial statements provide information about a company's performance and financial position to both internal and external
Introduction-to-Financial-Statements.pptx
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, op
understanding the accounting equation.pptx
The document discusses the accounting equation and its components - assets, liabilities, and owner's equity. It defines each term and provides examples. It also summarizes 10 sample transactions to demonstrate how the accounting equation is impacted by business activities like purchases, sales, expenses and owner withdrawals. Understanding the accounting equation and how it is affected is important for financial analysis, decision making, and regulatory compliance.
Topic 2 2_ (2) finance
The document discusses the needs and purposes of key financial statements including the income statement, balance sheet, and statement of cash flows. It explains the components and calculations of these statements. It also describes common financial ratios used in analysis of statements, such as liquidity, profitability, asset management, and leverage ratios. These ratios are used to evaluate a firm's performance and financial position over time and in comparison to other companies.
Ff topic2 analysis_of_financial_statement_and_cash_flow
This document provides an overview of financial statement analysis and cash flow analysis. It defines key financial statements including the balance sheet, income statement, and statement of cash flows. It explains the purpose of financial statement analysis for both internal and external users. The document then describes various items and terms for each financial statement like assets, liabilities, equity, revenues, and expenses. It also introduces several important financial ratios to measure a company's liquidity, asset management, profitability, leverage, and market value. Formulas are provided for calculating common ratios.
Which of the following is an advantage of corporations relative to.docx
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
Reduced legal liability for investors.
Harder to transfer ownership.
Lower taxes.
Most common form of organization.
The group of users of accounting information charged with achieving the goals of the business is its
managers.
auditors.
investors.
creditors.
Which of the following financial statements is concerned with the company at a point in time?
Retained Earnings statement.
Income statement.
Statement of cash flows.
Balance sheet.
An income statement
reports the changes in assets, liabilities, and stockholders’ equity over a period of time.
presents the revenues and expenses for a specific period of time.
reports the assets, liabilities, and stockholders’ equity at a specific date.
summarizes the changes in retained earnings for a specific period of time.
The most important information needed to determine if companies can pay their current obligations is the
relationship between short-term and long-term liabilities.
projected net income for next year.
net income for this year.
relationship between current assets and current liabilities.
A liquidity ratio measures the
ability of a company to survive over a long period of time.
short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash.
percentage of total financing provided by creditors.
income or operating success of a company over a period of time.
The convention of consistency refers to consistent use of accounting principles
within industries.
among accounting periods.
among firms.
throughout the accounting periods.
Horizontal analysis is also known as
linear analysis.
vertical analysis.
common size analysis.
trend analysis.
Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
to determine the amount and/or percentage increase or decrease that has taken place.
that has been arranged from the highest number to the lowest number.
that has been arranged from the lowest number to the highest number.
to determine which items are in error.
Vertical analysis is a technique that expresses each item in a financial statement
starting with the highest value down to the lowest value.
as a percent of the item in the previous year.
as a percent of a base amount.
in dollars and cents.
Process costing is used when
production is aimed at filling a specific customer order.
dissimilar products are involved.
costs are to be assigned to specific jobs.
the production process is continuous.
An important feature of a job order cost system is that each job
has its own distinguishing characteristics.
must be completed before a new job is accepted.
consists of one unit of output.
must be similar to previous jobs completed.
In a process cost system, product costs are summarized:
on job cost sheets.
w.
Accounting - Part 1
Accounting involves identifying, measuring, and communicating the economic information of a business entity to its users. It records transactions and events to determine the entity's financial position. Accounting identifies assets, liabilities, and equity through a system of debits and credits according to the dual aspect concept. The accounting process provides information to owners, managers, creditors, government, and others for decision making.
M6 L1 Financial Documents Used in a Small Business
The document discusses key financial documents used in small businesses: the balance sheet, income statement, and statement of cash flows. It provides explanations of what each statement shows and the types of financial information included in them. The balance sheet presents a company's assets, liabilities, and owner's equity at a point in time. The income statement compares revenues and expenses over a period of time to determine profit/loss. The statement of cash flows tracks a company's cash inflows and outflows. Together these statements provide a comprehensive view of a company's financial health and performance.
Which of the following is an advantage of corporations relative to.docx
Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?
Lower taxes.
Most common form of organization.
Reduced legal liability for investors.
Harder to transfer ownership.
The group of users of accounting information charged with achieving the goals of the business is its
auditors.
investors.
creditors.
managers.
Which of the following financial statements is concerned with the company at a point in time?
Statement of cash flows.
Retained Earnings statement.
Balance sheet.
Income statement.
An income statement
presents the revenues and expenses for a specific period of time.
reports the changes in assets, liabilities, and stockholders’ equity over a period of time.
reports the assets, liabilities, and stockholders’ equity at a specific date.
summarizes the changes in retained earnings for a specific period of time.
The most important information needed to determine if companies can pay their current obligations is the
projected net income for next year.
relationship between current assets and current liabilities.
relationship between short-term and long-term liabilities.
net income for this year.
A liquidity ratio measures the
income or operating success of a company over a period of time.
ability of a company to survive over a long period of time.
percentage of total financing provided by creditors.
short-term ability of a company to pay its maturing obligations and to meet unexpected needs for
cash.
The convention of consistency refers to consistent use of accounting principles
among firms.
among accounting periods.
throughout the accounting periods.
within industries.
Horizontal analysis is also known as
vertical analysis.
trend analysis.
linear analysis.
common size analysis.
Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time
to determine the amount and/or percentage increase or decrease that has taken place.
that has been arranged from the lowest number to the highest number.
that has been arranged from the highest number to the lowest number.
to determine which items are in error.
Vertical analysis is a technique that expresses each item in a financial statement
starting with the highest value down to the lowest value.
in dollars and cents.
as a percent of the item in the previous year.
as a percent of a base amount.
Process costing is used when
production is aimed at filling a specific customer order.
dissimilar products are involved.
the production process is continuous.
costs are to be assigned to specific jobs.
An important feature of a job order cost system is that each job
has its own distinguishing characteristics.
must be completed before a new job is accepted.
consists of one unit of output.
must be similar to previous jobs completed.
In a process cost system, product costs are summarized:
after each unit is produced..
Accountancy2
The document defines key accounting terms and concepts:
1. It describes a business entity as a specific identifiable enterprise, and explains the concepts of separate business and owner identities.
2. It defines a transaction as an event involving an exchange of value between two or more entities, such as purchases, receipts, or payments.
3. It explains key accounting equations like assets = liabilities + capital/equity, and the dual aspect principle where every transaction has two equal and opposite accounting aspects.
Balance sheet.pdf
This document provides an overview of key concepts related to balance sheets, including:
- Assets are classified as current, long-term, property/equipment, and intangible
- Liabilities are classified as current or long-term
- Owners' equity includes contributed capital and retained earnings
- Transactions affect the accounting equation by increasing or decreasing specific balance sheet accounts to maintain the balance sheet identity of assets = liabilities + owners' equity.
Basic Accounting terms and terminology upload.pptx
The document defines key accounting and business terms related to debtors, creditors, assets, liabilities, expenses, income, and transactions. It explains that debtors owe money to a business for goods or services purchased on credit, while creditors are owed money by a business for goods or services provided on credit. Assets are items of value owned by a business, and can be classified as fixed, current, tangible, or intangible. Liabilities are amounts owed by a business, while expenses are costs that reduce income, which is defined as revenue minus expenses.
Fixed assets -tangible
Fixed tangible assets include land, buildings, plant and machinery, equipment, furniture, vehicles, and leasehold improvements. The cost of fixed assets includes the purchase price plus any additional expenditures incurred until the asset is ready for its intended use. Fixed assets are depreciated over their useful lives to match the cost to the periods benefited from use. Depreciation methods include straight line and written down value and aim to reflect the asset's declining value each year.
C2
The document discusses financial statements, including the income statement, balance sheet, statement of retained earnings, and statement of cash flows. It provides details on the key components and purposes of each statement. The income statement shows a company's revenues, expenses and profits over a period of time. The balance sheet outlines a company's assets, liabilities, and shareholders' equity at a point in time. The statement of retained earnings shows how much earnings have been retained in the business each year. And the statement of cash flows provides information on a company's cash inflows and outflows from operating, investing, and financing activities.
Share based payment best presentation for students
This transaction will be accounted for as an equity-settled share-based payment transaction in the company's financial statements as follows:
On June 1, 2010 (date of grant):
Inventory 6,000,000
Share capital/Reserves 6,300,000
(Inventory is measured at fair value of goods received)
On December 3, 2012 (date of sale):
Cash 8,000,000
Inventory 6,000,000
Gain on sale of inventory 2,000,000
(Inventory is derecognized at original cost on date of sale)
No expense is recognized in the income statement as this is an equity-settled transaction. The difference between fair value of shares granted and value
Basicsofaccounting 120223232525-phpapp01
This document provides an introduction to key accounting concepts and terms. It defines accounting as the process of identifying, recording, classifying, summarizing, and communicating financial information. The key concepts covered include the accounting equation, double-entry bookkeeping system, accounting cycle, journals, ledgers, debits and credits, and types of accounts. Examples are provided to illustrate basic accounting transactions and how they are recorded using debits and credits according to the rules of double-entry bookkeeping.
Similar to Asset (20)
Ff topic2 analysis_of_financial_statement_and_cash_flow
Ff topic2 analysis_of_financial_statement_and_cash_flow
Which of the following is an advantage of corporations relative to.docx
Which of the following is an advantage of corporations relative to.docx
M6 L1 Financial Documents Used in a Small Business
M6 L1 Financial Documents Used in a Small Business
Which of the following is an advantage of corporations relative to.docx
Which of the following is an advantage of corporations relative to.docx
Basic Accounting terms and terminology upload.pptx
Basic Accounting terms and terminology upload.pptx
Share based payment best presentation for students
Share based payment best presentation for students
More from krupa118
marketing channels
This document summarizes different types of marketing channels. It describes vertical channels as professionally managed networks with centralized programming to achieve economies and market impact. Vertical channels can be administrative, contractual, or corporate. Horizontal channels involve two or more companies joining together to exploit opportunities, such as through syndicates or associated companies. The document also provides examples of different common marketing channels including ones using sales forces, retailers, wholesalers, and agents.
The human resource challenges for higher education
The document discusses the human resource challenges facing higher education in India. It notes that while India has over 700 universities and 35,000 colleges, the quality of education remains low, with two-thirds of institutions below standard. Key challenges include a lack of access, with only 30% of the eligible population currently enrolled, as well as shortages of qualified faculty. Research output is also falling short, with just 4% of research expenditures coming from universities compared to 17% in the US. The document examines challenges around equity and access for women, rural populations, and lower castes, as well as a decline in traditional fields of study and over-reliance on reservations in admissions.
Higher education
The higher education system in India faces several challenges:
1. Low enrollment rates, with only 20.8% of the eligible population enrolled in higher education. Enrollment is even lower for women and disadvantaged groups.
2. Poor quality of education, with only 10% of colleges and 32% of universities rated as 'A' quality by regulatory bodies.
3. Inequality in access to education, with large variations in enrollment rates between general population and disadvantaged social groups.
4. Shortage of faculty, with central universities, IIMs, and NITs all having over 25% of teaching positions vacant.
Quotes
This document contains short quotes and sayings about education, knowledge, wisdom, success, and human resources in higher education. It appears to be introducing a seminar on recent issues and challenges of human resources in higher education, as it contains quotes related to learning, career development, and the importance of education. The quotes are attributed to various authors and cover topics like the importance of enthusiasm, balancing duty and beauty, avoiding distractions, and continuing to learn throughout one's career.
Audit Report
Audit report is an end product of auditing, auditing main intention is to generate audit report.......
Entrepreneurship Development Programe
Economic development is crucial for any country or region to prosper. It involves activities that encourage economic growth and overall standards of living through job creation, infrastructure development, and business expansion. Successful economic development strategies require cooperation between the private and public sectors to attract investment, support local businesses, and provide workforce training programs.
PRINTERS
Printer is an output device that prints processed information onto paper or polymer sheets. There are two main types of printers: impact printers, which work like typewriters by pressing inked ribbons against paper, and non-impact printers, which do not touch the print head to the paper. Examples of printers described in the document include dot matrix, drum, line, inkjet, and laser printers.
SAARC
The document discusses the South Asian Association for Regional Cooperation (SAARC), an organization of South Asian countries formed in 1985 with the purpose of promoting economic, technical, social, and cultural development. SAARC's headquarters is located in Kathmandu, Nepal. The document also discusses the South Asian Free Trade Area (SAFTA) agreement signed in 2004 to create a free trade area among SAARC member states and gradually reduce customs duties on all traded goods to zero by 2016.
More from krupa118 (8)
The human resource challenges for higher education
The human resource challenges for higher education
Recently uploaded
DRUGS AND ITS classification slide share
Any substance (other than food) that is used to prevent, diagnose, treat, or relieve symptoms of a
disease or abnormal condition
Introduction to AI for Nonprofits with Tapp Network
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
The History of Stoke Newington Street Names
Presented at the Stoke Newington Literary Festival on 9th June 2024
www.StokeNewingtonHistory.com
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingExcellence Foundation for South Sudan
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.Hindi varnamala | hindi alphabet PPT.pdf
हिंदी वर्णमाला पीपीटी, hindi alphabet PPT presentation, hindi varnamala PPT, Hindi Varnamala pdf, हिंदी स्वर, हिंदी व्यंजन, sikhiye hindi varnmala, dr. mulla adam ali, hindi language and literature, hindi alphabet with drawing, hindi alphabet pdf, hindi varnamala for childrens, hindi language, hindi varnamala practice for kids, https://www.drmullaadamali.com
Types of Herbal Cosmetics its standardization.
Physiology and chemistry of skin and pigmentation, hairs, scalp, lips and nail, Cleansing cream, Lotions, Face powders, Face packs, Lipsticks, Bath products, soaps and baby product,
Preparation and standardization of the following : Tonic, Bleaches, Dentifrices and Mouth washes & Tooth Pastes, Cosmetics for Nails.
clinical examination of hip joint (1).pdf
described clinical examination all orthopeadic conditions .
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)Academy of Science of South Africa
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.How to Build a Module in Odoo 17 Using the Scaffold Method
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
Main Java[All of the Base Concepts}.docx
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
A Survey of Techniques for Maximizing LLM Performance.pptx
A Survey of Techniques for Maximizing LLM Performance
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...Nguyen Thanh Tu Collection
https://app.box.com/s/y977uz6bpd3af4qsebv7r9b7s21935vdCACJapan - GROUP Presentation 1- Wk 4.pdf
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxMohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
Recently uploaded (20)
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
How to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold Method
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
A Survey of Techniques for Maximizing LLM Performance.pptx
A Survey of Techniques for Maximizing LLM Performance.pptx
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
BÀI TẬP BỔ TRỢ TIẾNG ANH 8 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2023-2024 (CÓ FI...
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Asset
- 2. Asset mean resources , things or rights of value owned by a business undertaking.
- 3. “Tangible objects or intangible rights owned by an enterprise and carrying probable future benefits”
- 4. This means that the asset has capacity to provide services or benefits to the enterprise that use them. it can used to produce or otherwise increase the value of other assets. It can also used to settle liabilities .
- 6. Income determination : Determination of financial position : Managerial decisions :
- 8. Historical cost A measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when acquired by the company.
- 9. 2000-01 yr :- 20 Crore 2010-11yr :- 40 Crore
- 10. B/S of 2000-01 liabilities Amount Assets Amount Fixed assets 20 Crore B/S of 2010-011 liabilities Amount Assets Amount Fixed assets 20 Crore
- 11. Replacement cost The cost to replace the assets of a company or a property of the same or equal value. The replacement cost asset of a company could be a building, machinery, stock , accounts receivable or liens. This cost can change depending on changes in market value.
- 12. 2000-01 yr :- 20 Crore 2010-11yr :- 40 Crore
- 13. B/S of 2000-01 liabilities Amount Assets Amount Fixed assets 20 Crore B/S of 2010-011 liabilities Amount Assets Amount Fixed assets 40 Crore