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Profit is the difference between your assets and liabilities if you have $30,000.00 in assets and $20,000.00 in liabilities = you would have $10,000.00 in profit If you have 22,000.00 in Assets and $30,000.00= you would have $-8,000.00 in loss can be written as ($-8,000.00) usually in Red hope this helps
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What is the different between Income statement and balance sheet?
The Income Statement, also know as a Profit and Loss Statement, details the entity's income and expenses for a specific period of time. The last entry on the statement, or "bottom line," is the entity's net profit or loss for that period. The Balance Sheet is a "snapshot" of the entity's financial condition at a specific point in time. The first section is Assets, or things the entity owns, which includes cash and investment accounts, fixed assets, and receivables, among others. The next section of the Balance Sheet is Liabilities and Equity. Liabilities, or things the entity owes, may include such accounts as vendor payables, payroll taxes due, notes and mortgages. Equity is the book value of the entity, and equals Assets - Liabilities. What accounts are included depends on the business form of the entity. A sole proprietor has Owner Equity; partners have Partner Capital; corporations have Capital Stock and Retained Earnings. The link below offers additional explanations.
Is decrease in liabilities is credit?
No, liabilities have a normal credit balance, that means that increases are also credit, and that decreases are debit. Please refer to the link provided for debit and credit rules.
What is the meaning of the term current ratio?
Current Ratio is an indicator of a firm's ability to meet short-term financial obligations, it is the ratio of current assets to current liabilities. Though every industry has its range of acceptable current-ratios, a ratio of 2:1 is considered desirable in most sectors. Since inventory is included in current assets, acid test ratio is a more suitable measure where saleability of inventory is questionable. Formula: Current assets divided by Current liabilities.Refer to link below
How do you figure out the excess of the current assets of a business over its current liabilities?
(This answer applies to the United States) According to "Generally Accepted Accounting Procedures" (GAAP) and US Laws and Regulations, a publicly held corporation (one which offers shares for sale to the public and is traded on a stock exchange such as NASDAQ or the New York Stock Exchange) must publish financial statements quarterly which include a statement of their total "Current Assets" and total "Current Liabilities" stated in dollars. Summaries of these statements may be found on such websites as Yahoo Finance (http://finance.yahoo.com). By entering the "ticker symbol" in the quote box (or starting to type the name of the corporation) you can reach a page where you find a link to their financial statements. There you will find totals for Current Liabilities and Current Assets. The "excess" in question, then, may be determined by simply subtracting the Current Liabilities from the Current Assets. For a corporation in good financial health, this number should certainly be positive, and in fact is often considered to be good only if it is about equal to the Current Liabilities taken by themselves. That condition would mean that the corporation has a "current ratio" (Current Liabilities divided by Current Assets) of 2, by the same token considered a "good" number. The optimal current ratio will vary with the type of business however, and a lower ratio might be acceptable in some cases. A very large current ratio suggests the business, while very solvent, may not be managing its cash well. A current ratio of less than one (and therefore a negative "excess") is technically insolvent (in a short time horizon) a Very Bad thing. ("Insolvent" means they can't pay their bills on demand, and could be forced into bankruptcy.) (Note that a privately held company may not be required to publish these numbers.)
What is called accounting?
Practice and body of knowledge concerned primarily withmethods for recording transactions,keeping financial records,performing internal audits,reporting and analyzing financial information to the management, andadvising on taxation matters.It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm's assets, liabilities and owners' equity. Accounting provides information on theresources available to a firm,the means employed to finance those resources, andthe results ...See link below
What is the difference between a Profit and Loss Account and a Balance Sheet?
A profit and loss account reports the results of activity over a period of time, usually one year. A balance sheet reports the situation (assets, liabilities and equity) at a point in time. The Profit and Loss Statement reports (Revenue - Expenses) Net Income (Net Profit) and it accumulates throughout one fiscal (business) year and is restarted from zero at the end of the year. The Balance Sheet reports the value of the entity (person or business). Assets = Liabilities + Equity. Its accounts start from zero at the beginning and continue to accumulate until the business closes. For more information check the related link.
What is the meaning of balance sheet for the year?
Balance sheet is a condensed statement that shows the financial position of an entity on a specified date (usually the last day of an accounting period).Among other items of information, a balance sheet states: what assets the entity owns,how it paid for them,what it owes (its liabilities), andwhat is the amount left after satisfying the liabilities.Balance sheet data is based on a fundamental accounting equation (assets = liabilities + owners' equity), and is classified under subheadings such as current assets, fixed assets, current liabilities, Long-term Liabilities.With income statement and cash flow statement, it comprises the set of documents indispensable in running a business.Refer to link below for more information.
What is the different between Income statement and balance sheet?
The Income Statement, also know as a Profit and Loss Statement, details the entity's income and expenses for a specific period of time. The last entry on the statement, or "bottom line," is the entity's net profit or loss for that period. The Balance Sheet is a "snapshot" of the entity's financial condition at a specific point in time. The first section is Assets, or things the entity owns, which includes cash and investment accounts, fixed assets, and receivables, among others. The next section of the Balance Sheet is Liabilities and Equity. Liabilities, or things the entity owes, may include such accounts as vendor payables, payroll taxes due, notes and mortgages. Equity is the book value of the entity, and equals Assets - Liabilities. What accounts are included depends on the business form of the entity. A sole proprietor has Owner Equity; partners have Partner Capital; corporations have Capital Stock and Retained Earnings. The link below offers additional explanations.
Is decrease in liabilities is credit?
No, liabilities have a normal credit balance, that means that increases are also credit, and that decreases are debit. Please refer to the link provided for debit and credit rules.
How much profit did Sweden make in 2012?
Countries do not make a profit as such - they have a GDP (see related link) and a trade balance (see related link).
What is the meaning of the term current ratio?
Current Ratio is an indicator of a firm's ability to meet short-term financial obligations, it is the ratio of current assets to current liabilities. Though every industry has its range of acceptable current-ratios, a ratio of 2:1 is considered desirable in most sectors. Since inventory is included in current assets, acid test ratio is a more suitable measure where saleability of inventory is questionable. Formula: Current assets divided by Current liabilities.Refer to link below
What is absolute liquidity?
Absolute Liquid Ratio is a type of liquidity ratio that is calculated to analyze the short term solvency or financial position of the firm. It is calculated to exclude the receivables from the current and liquid assets and to know about the absolute liquid assets
How do you get a retail price if you have the gross profit percent and cost?
Add the profit margin (cost*profit%) to the cost. Add the profit margin (cost*profit%) to the cost. Add the profit margin (cost*profit%) to the cost. Add the profit margin (cost*profit%) to the cost.
What is a Recurring Profit Machine?
If u want answer click on the link u will get your answer
What are the four basic financial statements in accounting?
FOUR THE KEY FINANCIAL STATEMENTOpen in Google Docs ViewerOpen link in new tabOpen link in new windowOpen link in new incognito windowDownload fileCopy link addressEdit PDF File on PDFescape.comBALANCE SHEETINCOME STATEMENTSTATEMENT OF STOCKHOLDER'SSTATEMENT OF CASH FLOWS
How do you figure out the excess of the current assets of a business over its current liabilities?
(This answer applies to the United States) According to "Generally Accepted Accounting Procedures" (GAAP) and US Laws and Regulations, a publicly held corporation (one which offers shares for sale to the public and is traded on a stock exchange such as NASDAQ or the New York Stock Exchange) must publish financial statements quarterly which include a statement of their total "Current Assets" and total "Current Liabilities" stated in dollars. Summaries of these statements may be found on such websites as Yahoo Finance (http://finance.yahoo.com). By entering the "ticker symbol" in the quote box (or starting to type the name of the corporation) you can reach a page where you find a link to their financial statements. There you will find totals for Current Liabilities and Current Assets. The "excess" in question, then, may be determined by simply subtracting the Current Liabilities from the Current Assets. For a corporation in good financial health, this number should certainly be positive, and in fact is often considered to be good only if it is about equal to the Current Liabilities taken by themselves. That condition would mean that the corporation has a "current ratio" (Current Liabilities divided by Current Assets) of 2, by the same token considered a "good" number. The optimal current ratio will vary with the type of business however, and a lower ratio might be acceptable in some cases. A very large current ratio suggests the business, while very solvent, may not be managing its cash well. A current ratio of less than one (and therefore a negative "excess") is technically insolvent (in a short time horizon) a Very Bad thing. ("Insolvent" means they can't pay their bills on demand, and could be forced into bankruptcy.) (Note that a privately held company may not be required to publish these numbers.)
What is NAV and how is it calculated?
The NAV measures how much each unit of a fund is worth. It is the total market value of all the assets held, including cash in the portfolio, minus the liabilities and this entire result is divided by the total number of units. To learn more about NAV check out this link - http://www.cafemutual.com/News/InnerKnowledge.aspx?srno=79&MainType=Tutorials&id=5
