Archive about 'Stock Write Off and Provision'

Financial Accounting Quiz on Basic accounting

Refresh or test your accounting knowledge on Basic accounting: Multiple Choice Questions (with answer(below)) 1. Which of the following is a form of the balance sheet equation? a. Assets=Liabilities+(Paid in Capital + Retained Income) b. Assets+ Liabilities= Owners’ Equity c. Assets + Owner’s Equity =Liabilities d. Assets-Paid in capital = Liabilities-Retained income 2. _________ are distributions [...]

FORMAT OF INTERIM FINANCIAL REPORTS(FRS 134)

  The interim financial statements (whether condensed or full set) include: Balance sheet as of the end of the current interim period and a comparative balance sheet as of the end of the immediately preceding financial year Income statements for the current interim period and cumulatively for the current financial year to date, with comparative [...]

Items Normally Included in The Selling And Distribution Expenses, Administration Expenses and Finances Expenses of the Income Statement

Major Expenses Category In Income Statement Selling And Distribution Expenses  Category of the Income Statement These are expenses associated with the process of selling and delivering goods and services to customers:- Salaries of marketing manager, sales director and sales management Salaries and commission of salesmen Travelling and entertainment expenses of salesmen Marketing costs like advertising [...]

Explain What Is The Difference Between Income and Revenue

The major difference between Income and Revenue is that Income encompasses both revenue and gains ( like for example gains or loss from disposal of fixed assets, foreign exchanges, etc which do not arise from the core business of an entity ) Income definition and scope is very much wider namely it denotes the increases [...]

Explain briefly what is the Classical Theory Of Employment.

Classical theory of employment: Economic thought of the Classical School of economist and based on two fundamental postulates: The wage will be equal to the marginal product of labor; (represent the demand schedule for labor) and the utility of the wage when a given volume of labor is employed is equal the marginal disutility of [...]

Explain What Are Stock Reorder Level, Maximum, Minimum and Safety or Buffer Stock Level, Their Purpose And Formula.

Question: Explain what is stock reorder level, what is it for and the formula to compute this stock reorder level. Also explain what is Maximum, Minimum and Safety Stock level Suggested Answer: Stock Reorder Level, Purpose & Formula: Stock reorder level indicates to the stock controller when it is necessary to reorder certain raw materials [...]

Internal Control Checklist/Questionaires/Assessment On Revenue Cycle

General Policies and procedures for credit and collections management should be clearly documented and communicated. Credit Assessment · The credit worthiness of all new credit customers should be evaluated and documented for approvals in the credit assessment forms. · Credit limits of customers must be approved in accordance with the DOA. · The credit assessments [...]

When To Adopt A Periodic Inventory System Or A Perpetual Inventory System?

I wish to know which Inventory system to adopt. My main problem is that my company is not able to record Cost of goods sold at the same time that the sale is recorded. Please advise? One of the main criteria affecting the choice of an inventory system is that where at the time of [...]

Answer To Question On Cash Versus Accrual Accounting

Earlier topic on accruals concept and profit versus cash concept refers. Basically, a majority of small businesses use the cash method of accounting since it is simple to understand. The business records the earnings only when the cash is received and records all its expenses when the check or cash is issued. [ Payments are [...]

Basic Understanding Of Islamic Accounting, Its Objectives and The Differences Between Convention Accounting

Below is a snapshot of the definition, similarity and differences between Islamic Accounting and Conventional Accounting.   Definition Of Islamic Accounting   the “accounting process” which provides appropriate information (not necessarily limited to financial data) to stakeholders of an entity which will enable them to ensure that the entity is continuously operating within the bounds [...]