No retained earnings and net income is not the same. Retained earnings includes the net income for the year. It also includes the income generated during the past years less any dividends paid.
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The audit findings are reported in the audit report. If there is no finding of material error, then the audit opinion is unqualified. Apart from the audit opinion, the audit findings are also reported to the management and the audit committee.
The audit findings are reported in the audit report. If there is no finding of material error, then the audit opinion is unqualified. Apart from the audit opinion, the audit findings are also reported to the management and the audit committee.
The expenses are a debit so cost of goods sold are a debit. If you use an item from the inventory you should credit your inventory account (asset) and debit your cost of goods sold. A different approach would be to debit your cost of goods sold whe…
The expenses are a debit so cost of goods sold are a debit. If you use an item from the inventory you should credit your inventory account (asset) and debit your cost of goods sold.
A different approach would be to debit your cost of goods sold when you purchase something and credit cash or accounts payable. At the year end, you will make two adjustments. The first adjustment is the opening stock and the second adjustment is the closing stock. So cost of sales will need to be debited for the opening stock and credited for the closing stock. The other entry will be the inventory line in the balance sheet.
Corporate veil means that the shareholders and the company are two distinct things and that a limited liability company is the solely responsible for its debts.
Corporate veil means that the shareholders and the company are two distinct things and that a limited liability company is the solely responsible for its debts.
No, allowance for doubtful debt is a contra account that reduces the accounts receivable. It is not reported separately on the balance sheet.
No, allowance for doubtful debt is a contra account that reduces the accounts receivable. It is not reported separately on the balance sheet.
Retained earnings are part of the equity which under IFRS is the last section of the balance sheet. They are not part of the liabilities.
Retained earnings are part of the equity which under IFRS is the last section of the balance sheet. They are not part of the liabilities.