Balance Sheet Example,What is The Horizontal and What is the Vertical Presentation Method Of Preparing A Balance Sheet

Earlier article we have describe what is a balance sheet re:a Balance Sheet is called the Statement of Financial Position which is a snapshot of a company’s financial position at a particular point in time. The Accounting equation which is Assets= Liabilities+ Stockholder’s Equity is closely link to the Balance Sheet. Because of this accounting equation … Read more

Income Statement Example And The Single Step & Multiple Step Income Statement

Question: What is Single Step Income Statement and Multiple Step Income Statement, and what are the advantages and disadvantages of using them. Answer: Basically, there are two format namely the Single Step Format and Multiple-Step Income Statement. Single Step Income Statement Example is as follows: Single Step Income Statement   $ Revenues   Net Sales … Read more

In Marginal costing, explain what is contribution accounting and the difference between contribution and net profit. Explain what is contribution, contribution costing,and contribution graph.

Contribution is: The difference between selling price and variable costs. Can also be called “contribution towards fixed costs and profits” This is because contribution is available to pay the fixed costs of a business and once the fixed costs are covered the contribution becomes the profit of the entity Often seen in profit statement under … Read more