| C. For debt issued at a discount: interest expense reported on the income statement equals cash interest payment less amortization of the discount. | Answers: | A. For debt issued at par: interest expense reported on the income statement equals the cash paid for interest. | | B. For bond repurchases, the gain or loss is the difference between the book value and the repurchase amount. | | C. For debt issued at a discount: interest expense reported on the income statement equals cash interest
Words: 1169 - Pages: 5
Revenues Operating Expense Other Income (Expense) Comprehensive Income Non Service Revenuues Net Income Before Income Tax Income Tax Given the details from the basic elements of comprehensive financial statement, the status of four years business operations of PLDT is better understood and interpreted if such details be presented in a bar graph picture shown above. The revenues for the consecutive years remain almost constant, same with the operating expense and income tax expense level. Refer to
Words: 1643 - Pages: 7
proprietor is netted with related ordinary and necessary business expenses to determine the effect on AGI. 2. Discuss the concepts of ordinary, necessary, and reasonable in relation to trade or business expenses. Answer: According §162, in order for an expense to be deductible it must be an ordinary and necessary expenditure. The expense must also be reasonable (as established by the courts). A trade or business expense must not only be ordinary and necessary but also reasonable in
Words: 6206 - Pages: 25
charge, but generally 25 percent of self-pay charges become a bad debt. Note that bad debts are treated as expense in health care. They may not be shown as a reduction lowering revenues. The full charge for self-pay patients is shown as revenue, and then the uncollectible amount is shown as an expense. No payment for charity care is ever received, and charity care is not shown as a revenue or expense. The
Words: 1144 - Pages: 5
Chapter 1 INTRODUCTION Objective of the Study The study is conducted, which aimed to identify the feasibility of the proposed business “Knights’ Fruit Malabon” at Poblacion, Mawab, Compostela Valley Province. Determining and identifying the procedures of the whole operation of the chosen business from its production, marketing and financing the said business. The objective of the study is to promote the product and create a harmonious relationship towards the customers and in the society
Words: 7516 - Pages: 31
your budget on a month-to-month basis. What You Should Know Before Getting Started • The Purpose of a Cash Budget • Why Prepare a Cash Budget? 3 3 4 How to Create a Cash Budget • Time Period • Desired Cash Position • Estimated Sales and Expenses • Cash Flow Budget Worksheet 4 6 6 6 9 How to Analyze a Cash Budget Conclusion Checklist Resources 10 11 11 12 how to prepare a cash budget 3 what to expect This Business Builder will introduce you to the fundamental concepts
Words: 2802 - Pages: 12
Statement An income statement is the amount of revenue earned and expenses incurring by a business over a period of time. The income statement is separated into two parts, the revenue or moneys coming into a business and the expenses or the money going out of the business. Brandywine’s 2007 Income Statement Revenue $12,000,000 Operating Expenses: Salaries Expense $5,000,000 Supplies $120,000 Utilities $140,000
Words: 1141 - Pages: 5
company’s product | X | | Problem 2-16 (45 minutes) 1. | Cost of goods sold | Variable | | Advertising expense | Fixed | | Shipping expense | Mixed | | Salaries and commissions | Mixed | | Insurance expense | Fixed | | Depreciation expense | Fixed | 2. Analysis of the mixed expenses: | Units | Shipping Expense | Salaries and Commissions Expense | High level of activity | 5,000 | $38,000 | $90,000 | Low level of activity | 4,000 | 34,000 | 78,000
Words: 1231 - Pages: 5
Tangible assets: Assets which t have physical existence or which are touchable. Ex: Plant and machinery, buildings, furniture etc. Intangible assets: Assets which don’t have physical existence or which are not touchable. Ex: Goodwill, Patents, etc. Share warrants: (Page 74 of Tata steel annual report) A warrant gives the holder the right but not the obligation to buy an underlying security at a certain price, a specified quantity at predetermined future time. A share warrant cannot be issued by
Words: 1764 - Pages: 8
a. SINGH COMPANY’S JOURNAL ENTRIES FOR 2011 |Date |Entry number | |Amount debited |Amount credited | | | |Names of accounts debited and credited | | | |Jan. 1 |1 |Cash (A) |250,000 | | | |
Words: 587 - Pages: 3
