In accounting why liquidating is declaired
A turnaround is the financial recovery of a company that has been performing poorly for an extended time.To effect a turnaround, a company must acknowledge and identify its problems, consider changes in management, and develop and implement a problem-solving strategy.The balance sheet is a snapshot of the company's financial standing at an instant in time.The balance sheet shows the company's financial position, what it owns (assets) and what it owes (liabilities and net worth).An exception to this general principle is where a dividend consists of a distribution of an asset A summary of the withholding tax rates as per the South African Double Taxation Agreements currently in force has been split into two parts, Africa and the rest of the world.See the two sheets on the Dividends Tax Tables - Summary of DTA rates.
Internal transactions do not affect the basic accounting equation because they are economic events that occur entirely within one company. The purchase of store equipment for cash reduces the owner’s equity by an equal amount. The purchase of office equipment on credit increases total assets and total liabilities. The primary purpose of the statement of cash flows is to provide information about the cash receipts and cash payments of a company during a period. Net income for the period is determined by subtracting total expenses and drawings from total revenues. Identifying is the process of keeping a chronological diary of events measured in dollars and cents. Management consulting includes examining the financial statements of companies and expressing an opinion as to the fairness of their presentation. Accountantsdo not have to worry about issues of ethics. At the time an asset is acquired, cost and value should be the same. The monetary unit assumption requires that all dollar amounts be rounded to the nearest dollar. The basic accounting equation is in balance when the creditor and ownership claims against the business equal the assets. External transactions involve economic events between the company and some other enterprise or party. In the owner’s equity statement, revenues are listed first, followed by expenses, and net income (or net loss).
Email us if you need help with your assignments, we can provide high quality custom assignments for your classes: [email protected] 1 ACCOUNTINGIN ACTION CHAPTERSTUDY OBJECTIVES 1.
Understand why ethics is a fundamental business concept. Explain generally accepted accounting principles and the cost principle. Explain the monetary unit assumption and the economic entity assumption. State the accounting equation, and define assets, liabilities, and owner’s equity. Analyze the effects of business transactions on the accounting equation. Understand the four financial statements and how they are prepared. Explain the career opportunities in TRUE-FALSESTATEMENTS 1.
The process of recording transactions has become more efficient because a.
more people have been hired to record business transactions. business events are recorded only at the end of the year. Communicationof economic events is the part of the accounting process that involves a.