Introduction to Accounting - AAS1 - Essay Example

Only on StudentShare

Extract of sample
Introduction to Accounting - AAS1

There is a significant relationship exist between revenue and expense. The company incurs expenses to generate revenue so, the matching principle states that all the expenses that were incurred in a period to generate revenue should be subtracted from the revenue of the same period for the purpose of computation of the net income (Nikolai, et al., 2010). Going Concern Concept Going concern is also a key concept accounting that assumes that the company will continue its operation for a foreseeable future. This important assumption is made because the amount of time, the company will continue its business cannot be predicted (Carl, 2011). IAS 1 states that if the company has serious threats to going concern they must be adequately disclosed in the financial statements and if the management concludes that the entity is not going concern the financial statements should not be prepared on going concern assumption. Business Rates In the previous year the company paid total amount of ?9,600 on account of business rates, in the two equal installments of ?4,800 each. Now if the rates for the bills are higher by 5% in the current year, the total amount of the bill will be ?10,080 (9,600*1.05) making it ?5,040 each installment. First installment has already been paid and the second installment is due in December 2012. ...Show more

Summary

Introduction to Accounting Introduction to Accounting Accruals Accrual basis is one of the fundamental concepts of accounting. Accrual basis of accounting means that the revenues are recorded when the sales are made or the services are rendered…
Author : ogleichner
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Introduction to Accounting - AAS1"
with a personal 20% discount.
Grab the best paper

Related Essays

Contemporary Management Practices within the Public Sector
The measuring framework must take into consideration the factors of effectiveness and efficiency (measured through cost effectiveness and achieving the desired procurement results), confidence of the civil society (which is reflected in the system accountability and transparency factors), and the policy acquiescence and stability factors.
112 pages (28000 words) Thesis
Introduction to Management Accounting
The simultaneous use of empirical evidence can increase the credibility of the choices made. Current paper tries to identify the motivational theories available to a management accountant who has to set a budget.
10 pages (2500 words) Essay
Introduction to Management Accounting
Therefore for every company employee performance is utmost important. The level of motivation defines the performance of the employee which can be achieved for fulfilling the targets of the company. Therefore the motivational factors are often kept in mind by the management accountants while preparing the budgets.
8 pages (2000 words) Essay
Introduction to Business Accounting
Depreciation Net Book Value Fixed assets Motor Vehicles 20,000 13,000 7,000 Computer Equipment 14,000 10,500 3,500 10,500 Current assets Stock 70,000 Trade debtors 27,860 less provision for doubtful debt 1,260 Bank Account 3,000 99,600 Creditors < 12 months Trade creditors 17,000 17,000 Net current assets 82,600 Creditors > 12 months - Net assets 93,100 Capital and reserves Capital 31,600 less drawings 24,000 Profit 85,500 93,100 What are the potential problems and limitations of financial ratio analysis?
5 pages (1250 words) Essay
INTRODUCTION TO FINANCIAL ACCOUNTING
expense 4500 Paid-in capital 90000 Property taxes 6500 Rent 22000 Retained earnings 156400 Revenues 619400 Salaries 61940 Utilities 7400 Totals 995300 995300 Adjusting entries to fix errors Retained earnings 10000 Inventory 10000 Cash 5000 Sales revenues 5000 Picket Company Adjusted Trial Balance Account payable 14500 Account receivable 18000 Cash 42000 Common stock 10000 Depreciation expense 18250 Cost of goods sold 402610 Equipment 325000 Insurance 1500 Inventory 70500 Long term debt 105000 Marketing expense 5600 Misc.
3 pages (750 words) Essay
Introduction to Business Accounting
Financial Statements as Relevant to the Annual Report of a Company:Introduction:The Financial Statements normally are presented in an entity’s annual report and provide a broad overview of where the company stands in terms of financial performance. Two integral components of these Financial Statements, crucial for the purpose of decision making and strategy formulation of the company, are the Statement of Financial Position and the Income Statement.
4 pages (1000 words) Essay
Introduction to Accounting - AAS3
5.6 billion per year and is likely to double in a decade. It has a market share of 11.7% which is just behind that of Tesco, Asda and Sainsbury while its range of products includes grocery items such as food, drinks, nuts, sauces, soups, ready meal, frozen meal, and specialized range of products that are targeted towards health conscious people.
6 pages (1500 words) Coursework
Introduction to management accounting
The company is targeting to sell its products to lower and middle-income individuals. The monthly sales growth of toothbrush and toothpaste is expected to grow at sales of ?100 and ?300 respectively for the first year. Although the market is characterized by a large number of toothpaste and toothbrush brands, the company expects its low-priced products to attract consumers with an intention of saving income.
6 pages (1500 words) Essay
Descriptive Statistics
nderstanding distribution of levels of consumption and associated factors is significant to business organizations for policymaking and for decisions on levels of production (Lee, C., Lee, J., & Lee A., 2013). Understanding distribution of levels of income across a market
6 pages (1500 words) Statistics Project
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT