Financial statement Forms of mm ① organization Business Sole " Proprietorship ainuiiso.sn simple : sole owner , controlled - " ② Partnership ③ Cor 'p'ÉÑ"ation : people , shared control 2 > 3 nb : iria v. Éd → easier to , +IF User In'ninÉoÉo , resource ownership tuoigis) . aeñivooaocon , External Finance Investors management Creditors margeting Taxing ( sina.isoianoiwxlnw.soo.in @ a. ihiÉoÉo , authorities financial Effective System information Existence assertions exist : Completeness law] Presentation - management mmmm no> 8nF + nssw8nÉ : Disclosure : j Financing Process → : in Financial Report → 4 Financial Report / - statement - MSU) Ñw : Borrowing Money → creditor cioiuni) party : Interrelationship management to whom amounts payable / Account are Statement owed payable payable monsters ( V. onmzioob) ( 2nd Where , show Bonds i. 2 Issuing → Stock : sha÷fstk Equity : selling Common stockholders → 2. 2 purchase of Investments 3.1 2 : → Auditor 's to understand , moon stock Insuanc onion Purchase = = payment mis " dividends cash changing operating to operate " discussion Q , + Half years , Analysis unqualified → Qualified opinion correct : dn.si mission / : Disclaimer of opinion Adverse opinion : : .DNoÉab Iain Sidman 118000 tiers . i. opinions incorrect assets oijoibaoo BIS f ⑦ -0 * Balance sheet at Point of time show asset Revenue Revenue -0 → Expenses sale → in part of ↳⑧ earned from sale + service + interest " Salaries , Net income Retained " interest + , , Insurance Retained Depreciation R + , - E Net = Inventory : → liabilities → Net income , cog, Account , / : : Right to , aggey, receive consume, , money gem , , Earning * less : % Retained earning Net soon'ob income earning from customer used payable loss ÷ ' Equity statement devidends Goods available for sale Alc receivable Expense , add @ loss • → stockholder iñurnsozosrosnrñonpanoios wages Supplies Interest = " I service, , Rent Net income : * → ( MDA) external auditor opinion fianoing Income statement tootnerassets Expenses Revenue Activities → yearly -1 change to_h* What ff§- Input ionssums oi7Ñws7W a ,µy , ( nisloiiw) , investing operating , : How Receipt , payment flow of cash : report ↳ of report # f•→w"nb noo> 181072 ) cash / Accrual limbo) using operating easy + - → , ) sources for cash stock * situ → Naomi 10754700078 , Winona> 8 Generating Operating 1100 : resources Operating 3 aiñorgio Investing 2 2. I : fair notest-E-i.IE?-atements*O ( Primary) noÉwÑb= debt : Notes liabilities all assets ownership + presented in the statement - Financing → proper liaise owns - 1.1 + report EIementsofn-nnoa-Re.pt Output Business Act : ② investing ③ operating 1 F. to accurate are ☐ onoaonsi-iiaooeviuousf.gg ① " waist ; : + Joonas figures presented all → Behavior Mmm antin / : " sound ethical on stated at period as rightiobigations - Information [ us Act Reporting depends AÉatin - - Accounting Sarbanes-Oxley : mm - Input personal ) no SOX > Finacial authorities Regulatory Financial ( loanword → , F-t-hisinfinan-iaeprtingimsqo.FM/onnnoissumsmsisw → HR 15nA -001101mn -1510 + goohwisnwwmsofou.is?oiondoaiod7 founder 0.110700727277 Internal Company C limit a. ÉuDa8ou9ñnwziÑwo , Taishi}@of @ funds raise , , Partnership www.isriwnworssz//u.iirin2iU7-8b--Nuahwmo7aaeo'nm5WÉ = mom ← + < onto in a. - Dogon -1000800N . sooooo Financial CHOZ temporary Permanent statement : Profit / Loss [ Net income] Accounts : Balance ASSETS Debit Current Assets cash cash + investment Accounts Receivable £3 Expenses + Snapshot Liabilities + months @nuÑmmsñ7 and oitohtwio.net : 2 long-term investment investment in stock long-term assets long-term notes ; = > bonds + PPE Property : gold , at other land , com . binominal receivable long useful lives Depreciation ↳ Less :: : Aollcating maturities of = , long - current years 10 Years Land i. No . :*.. . ñnÉowsm depreciation = = car , Goons COM , mortgages long term pension : a number of 07078 , taobao.ie?i (other Asset Goodwill • • Patent Copyright → . Accumulated amortization trademarks trade names , assts) amortization ↳ oiiiooowstns.mu licenses year , operating cycle Payable long-term obligation oionvoo Ciro;&o) notes } liabilities = long-term after pay i mm disowns}ooÉo @ zoos Booz year aeñiowaiusisiouw Pdldabk ( townie ) > ozogo Corwin) 3 's Common Stock Equity : ignoring L investments of asset into boss depreciation Intangible w/ in Next pay Deferred corrosion;D years Retained 4 to oinoowsionozowqisndoamzi.SN Stockholder toooooosmosis , i. liabilities term - the cost of asset to Accumulated 5 queso : .. . ⇐ Equipment * ↳ DowntownuÑñuzoo moisturized 2 Plant and , } taxes current years i years i " obligations wages Bond 3 :eynÑw interest income :> or : notes other Assets current Point of time .se/. . . . . Current liabilities Salaries - Equity Account i. non years i stockholder's one 1 s : longterm / : " iowoiiaonoio Inventory ↳ → financial positioning statement credit turn : current → sheet Dr : equivalents short-term Prepaid = convert to cash too -1in : decided level Accounts ↳ + management depioit Preferred Earning Earning Stock outstanding by stock stockholders ( motion M rivso-ow9ohsrnemtorsmmsoweonld.irident) Maqsood Clinton's ) laid8n8oioo-wloonn.mn CEO not dividentnsnd \ Analysis Ratio ↳ > 1 Ratios Profitability T unable to compared EPS : operating &7sns%msÑÑñs d. share per Earning e Liquidity Ratios : company Net income " to . . . pay obligations + biwowaoaiwqEw8nÉ of common stock diff " Outstanding oooÑbz+do = - number of shares common stock - weighed Average in item Preferred Dividends - weigted Average ability short-term measure of wide variations the cus success = ☒ 2 companies across income / Measure : among selected the relationship expresses y ms8insnumsmsl.TW : meet to unexpected needs of cash Bonanni osmosis T working capital Current Assets = Current ratio - Current liabilities Current Assets = Current liabilities 3 Ratios Solvency ability : D. survive over Finish9wmsiÑÑASzU > Asset Dealt to to Cash Evalating Free cash . : binman man by operating Flow GAAP A : set of that the standard SEC PCAOB RULES and accounting Securities : : : : Financial Inter nation Public Accepted profession , n Exchange Accounting substantial recognizes Accounting Commission a as standards / Thai Board Board Company Accounting Oversight Cash - amnio : Principles support authoritative general guide for financial noon → → Board GAAP IFRS . Dividends Expenditures Accounting having Standards = Nooo> rent sissies § Capital - Activities PRECTICES oiioooroonainiovinsiwñooneoi swjwintomsoiannosn-ssetsoi.PEhorns Bodies setting - FASB IASB Generally → Emotion Assets Net cash Provided = debt liabilities activities Taiwansnniiannaoi operating : 's nooooo total 4 • V70 total = period of time long a ( Noons : TFRS) , reporting purposes . operation CH 03 Record → / Accounting The : " R-ut-s-R-rdir.gg ✓( ¥ymm Enter transition to ③ Transfer Analyze Post - Trial → ← Journalist Entries - ✗ > > > statement Earnings Expense Accounts [T in - part of SE ] Account Post → ← | → balances check / prepare Income statement → Prepare → and a given time ⑤ prove that debits fm8dÉW equal credits Trial → Balance • Trial ↳ Revenue / Expense Ret at ?> MOMS Adjusting Entry Adjusted statement * ** Retained Earning add in Bts :•*%& keddggeerrw.noiao.com to f → " list of account Balance guonaaooudgmsgbiodg.SI Earning / dividend : baggy . info for Financial Statement Balance sheet ↳ * Asset = liabilities + Stock Equity rm dividends ✗ Retained internantrol a their Financial Closing Balance Income journal - Closing Accounts journal " " > transaction ✗ Revenue mm > ② Buiss have → IFRS ① Analyze financial transition → System Information > Davina 150 Accounting Transaction " Accounting equation Assets must be " Dual Effect Liabilities = Stockholder's 1- Equity commton-reta.in?d Earning III Stock , Ñ_ Rev - Exp - dividends videf Assfutliabilitiescommonpetainedrevenuesfxpensesdi stock Earning Deb.it/------+--credit----# Normal Dr Normal Cr + - = = Asset Lia , , Exp , Dividends common stock , Retained , Rev Accrual CH 04 Accounting account Cash accounting Basic Accrual contract identify account ( nosh ) ( " po obligation Performance 3 determine transaction price Recognize 5 Rev " Po Po when is supplies , advertising debit → credit → Expense + Recongnition Entries the cus → : rnsalsiodqssiuiñ trial balance may µ ⑤ up-to-date contain + buidings , -0 Assets : noirs taxes Assets expenses → ms9Ñu8nsÑÑo [ AK Assets iiurionozoiotugrornos , Before Revenue Record mm * µ subscriptions , , deposit credit → → cash Receipt liabilities Revenue Prepaid unearned Cash Accrued bioastronautics V10 Liabilities / liiouornsogonszrsmsisono ⑦ bi£oeEñ8uÑo [ A/c not OÑÑWÑb Before mm mom payable] Payment Revenues Expenses asset overstated liabilities Assets Expenses overstated understated understated g , , , Expenses understated Revenue understated Revenue understated sioñnroo liabilities understated oioooii = = , Rent adjusting → credit → , Assets Revenue taxes , salaries adjusting debit → expense credit → liabilities + Expenses service interests * Cash , debit Rent Expenses Expense Record Revenue Record Before interest Receipt - Accrued Revenues Accrued → closets) adjusting debit Liabilities Receivable] , b⑤omñNbJW paid Before Expenses Record Unearned Revenues All ticket completed data Accrued Revenues Prepaid Expenses ④ Expense Accruals issues mm rant transfer of owners Principle Revenue ↳ Deferrals , adjusting r⑧ Recognition Necessary goods at the end of service , equipment , Recognition satisfied ↳ grant → ooooh Expense insomnia service → Revenue " Adjusting insurance Assumption Principle mom price to period assumption f Periodictiy aioonnosaoooroii separate allocate the time nuno " 2 4 msÑ9wmrwwÑnoN§ : iiwon) 5sÉÉgni±n 1 Concepts inknoo.org ññs&ooñwJ merchandising C. 11-05 Buy Goods Sell + Operation + - Brison cost nibs a. → measurement Income * major ] Gross If A. High a. ¥00905bn \ 8727899wrnsoiisin expense during ] is misnomers Net - operating income Operating Cycle mail Buy f. merch and mail Y ing Credit - - on ← \ = Inventory ↳ will be " Beginning inventory " ! No interest to approve credit ; need cash discount Purchaser : saves seller : shorten operation money cycle by converting AIR to cash earlier sales discount = = / team limit www.B-obrinoooooB tools inroads marketing onwnihssr " 08s " mm > Net sales Sales = mmmm - * - Revenue [sales RTN + Sale discount ( cash ] Ratio discount ) GAAP ↳ ↳ function ooo noo → sina.ua-98010 → - = Net sales ↳ T.n.ooianonvosaio.ae's Diff nature Gross Profit Gross Profit Rate horns IFRS } msnszg.is mono Allowance Contra Rev account ! + Next Y Oona discount : £230060880 Cash BIS → 83min53 sale → Sold of Goods ⑧ winnow Inventory Term Available for sale Ending . " , Cost of Good Purchased + Income statement se AIC Cost → ¥ ordering com ddmin General , Inventory of Goods invent → expenses - COGS account) con of inventory cost ✓ AIR the period ñisogno Beginning service sold goods ñ9wmsoiuDzsns inventory → service cash No service Cash → * sold good expenses Flow Perform of operating → profit cost of : total cost Bliss ooo COGS - , gyms in, oiwn.rs COGS → sales Revenue Statement Multiple Step Income income statement Mark - up mommies unable to compare across Profit Margin Rate extent by which settling price coiners all expenses buiss Net Income = Net ( induct sales COGS) * . Perpetual System Inventory ✓ count record conti SKU Woo use POS iñuomaoso 1007 : of each invent once count at sale inventory SKU Beg + End 2g woe VAL or Software , unit keeping ↳ Periodic up-to-date , , stock = mmmm mmmm maintain SKU Barcode , provide Better control Perpetual system under + Buyer > : - debit Purchase ( Freight costs when Invoice → shipping FOB Destination mmm £08 "ñm% Rege , ved + Seller : [ L sales invoice : Buyer pays Seller : pays Allowance f. mmmm aoionsoanoiiñuuooo support " Credit on credit sale payment " update COGS + Inventory costs Destination Freight operating and → Sale RTN - + cash Discount ' Point FOB Returns Purchase ( " → operating expense) ( - > " Allowances is + F-xp . record Income statement 1 Single step Net Income ② Rev = F- xp - ① multi > 3 - step Components the highlight important - sustainable Profit Bor of Net income { profit Gross 1 z ③ from income ←• operation income Net ② niisrisinn.msDisowns " Unsustainable ③ " ✗ erosion stock loss : nooo loss : from causes as vandalism and accidents Comprehensive * a Report in Land , PPE , oiinirosmn.rs Income , no PPE , rate Anon Income before taxes g, pent statmentsuriisoian.is Euoioso 11 add-on once Income statement lot m%oÉo Insofar → dividends i.e. Morons Assets aÑ , / Lice 9ñDb Fair value i. e. reiwnioronaaawdobwnoono.noniobium needed Inventory classifying Inventory CHOG : ↳ just time in save m ( ( a ↳ lot of money transporter wz Quantities : monkish to www.onor ② work in Process ③ Finished Goods Ethics System ( periodic : system Good in transit " when niuorowioissoa : determind COGS season water / else ssisszuosñy FG need Mnet income DMG , Goods In TIS to test in Lab " " period accounting Rm Iwatani : ; need Buiss is slow or at end of the show in → add WIP : count defective , → low " i. gwngngn, , , invent record of accurary o-om.JO : management → now trading Goods → materials Raw - o.MG unsssinisevooy : ① → Perpetual finished Goods cycle management + iron : conversion zero as ing Manufacturing good relationship need Inventory MWÑnoB- 9039550 : inventory No = merchand so inventory keep jjf service stock up No → current assets = statement income go.gg Purchased - sold goods not goods not yet RCVD → yet delivered → FOB Destination FOB shipping point @notations ) si3nÑownsso8nÉ ownership still with owner ↳ share revenue only low Revenue msWomo Not soooo consigned Goods * ( Beginning Cost Inventory invent Specific identification ↳ specifically a : cost flow assumption { 2 FIFO LIFO > 4 , , , , - first out cost cost ; , Net = : income : management manipulate ending COGS = " net income to [iron cost ] too invent Ending inventory "" "" " "" ^5 higher +*☐ + invent COGS = ; lower income taxes unit cost incurred FIFO > mmmm lower-ofcos.to#market can Ending inventory Inflation weighted average m.gg, .gg, ,, , COST - consistently gang cost current oiriiiiaohhhsoun ; statement → should be n, in noon Average Income , last : management →" When I" " " " - arrive at the cost of the ; current , ad " " " 11 osñurpsouoii costed to First in First out : > 3 vi. ) purchases + Average µ, g. µ , : intension > LIFO : . cost of good always higher gy.y.mn, , man , , Minin reporters Bls cost-F-market.net Realised value -9 High invent level Statement Presented and Ana/ Sis Inventory Turnover = cost of Goods Sold Aveage B. Inventory to ( Beginning + 2 ) Ending Good Day glow in inventory = invent level Days in incur : high lead to : costs out of stock Year (365) Inventory i. e. Turnover , investment , lost sales § Good strange , insurance , demage Fraud CHO 7 Fraud msn.IM → Triangle personal benefit to at cost to the a (Tonk) ✗ sox ( - in opportunity that results dishonest act : Donohoe employee - employer - 1h80min53s effect to Asset of internal system co → Board of directors + outside auditors Diorio Independent In thai nnoib ovoid ) Financial Retionalization Pressure Enhance + measures efficiency Internal control Activities commu segregation - doc - of Duties Internal controls Limitation of Internal - follow → ñuaiusuis a.noioo + ÑnÉoÑo Oper nw . + Too> Ñ - Detective control " corrective / most effective ( Custody ) SOD ) honoring no doo safes control , Time ① bond check . 1 Require BG + limiting + on descriptive , access insane, onÑ&a " oinou - control " nñioiiioorsoono - , only personnel authorized , priority set operating management Record oonoinrin water mark docks record employee , , ,ÑnonohShUop teleivion monitor verified , by employee who handle cash , a. nszniiobnwi : Alarms who Pass , is key access independent Report → dnwoiiliiwoiide.tw discrepancy mgt vacation check software Program pattern check oingo ,ñÉ investigated quickly can - g- - control records accounting onto Nsz3n8ohN → Regulation * procedures pre numbered HR control - and effective ↳ Qa Explosion Joie's ③ conduct Analytics + . gnomon cost-benefit must No over benefit nisi ② rotate - wz Independent verification - Data laws - . Physical - - operations of of now staffing / Responsibility - of + + monitoring • - Principle reliabilities " activities Reliable d. uriuo.no Prevent control cost Info - + management control - are doin]MNÑnvrsiÑNMsI7bmsnooz8ouono% msn.qiinood-osnnoioi59wmsdoenouo.sk control environment components ;£noÑwn8wJ4etÑ assets accuracy compliance Risk . cnisooyasojoioy) safeguard methods us cooperate governance : ↳ sensitive (G) siuuoooooouonun control executives Corporate - act> sarbanes-oxley - forcase even cost of control human size ioioioo NOT over benefit Risk control → element of Buiss Possibility Risk depend on mgt → Risk chance 9g b vs impact impact 9 , impact P = = control control / Not Internal Control Responsibility HR ① Cash Receipt > - HR → this n.oiiroabou-msoouqwoonnnn.nl Physical 8Ñwuw9É opened by , upper → : * : . pay by Voucher frow , " EFT : sale : *→ is g Ghost report an employee department Normally - systems coiuuñnrtyodaoto) for use better internal control loreuuoinorooninioiiw ) for each expenditure 9ñnsoÑbÑobÉÑU Invoice # sent to disbursement - g. ✗ " prepared → " Receipt , authorization from Receipt Goods Mj safe , electronic funds transfer N°790 ion * physical custody jnu.in -0,8 soon -1 → Reg voucher system oioochk → Po depositary , manager → Check RQ vac two people clerk signs the list , Review → + from record-keeping print out : commission, Bonus control segregation , Eu check Allowance (monition ) Effective , , " salary Disbursement MORE Verification mail Receipt Payment * Doc over-the-counter (msÉuÑb) ✓ , , Bank Account 2 ooanoiwsf.be?ioBun i Windom 2 : more than If 3 [ check < cash → Acc • & : Interest NO : • + check bank @xeÑaooqsñ0 1OwÑuÑ v. Do@nuÑ 8. day 1 > = . orisons ( days 23 clearinghouse) Turnoff fee BUT BOOK BANK 8 =w-nsÑa Cory Ory}) only Payee . } g. Mmm bank same ↳ diff " by pay + } credit card same as Bonini → 33 cash ¥5010s .nl no-4180700 interest to : Bank Statement * b. is a COPY of Bant 's record sent to customer " Showing Banttransatin ,g § | ÉÉ - - - - . " " and Balance . " Bank Recon citation Deposit check clearing NSF check Bank charge Interest ( check lois , , commission → miasmas not) ( check Error , Non sufficient , msnszNUuoa Bank ① funds) cus uwooÑqnño ① Time service fee Bank - - Debit Memo 8. onto debt 9ñ , credit MEMO on @a , → debt ② Error → on , Less Book / Bank statement / add adjusted cash balance Der Boole / Bank binders:uÉDnD ; , : Human , per : , ng on, -01 cash balance adjust balance iooinsiuoinosnoissn.rs memoranda key no report in Bls in Tls µ, , ng , EFTS - lags deposit - @ ,@ . - for ] : Book ← + ,n, , fee , , CDM .gg,.gg,, .gg, , ,,,,,, ahn-aobooo.is Drop error iiwñioniiuwi Bank charge - , na Grini rood management Cash cash * How won cash * coins : ↳ 8ms come money , in STM of cash Equipvalent ↳ marketable : hand on flow owns Readily securities deposit , or intromission , monitoringcash mail Buyer cash → p seller f AIC need Buiss → - buy fsale invent ← - | - - store invent highly liquid - , o.si ion → , use for flow of cash iw81 → cash save Need cash long as , as operation poss should , Budgeting anticipated cash flow ahead to cover possi cash shows plan cash Receipt ① ② " Increase keep Plan speed of 1 year shortfall + or 1-2 payment timing Invest idle of ③ Financing of , JIT discount sale forecast use liabilities Payment , due " Beginning add years invariant ones cash cash : receipts sale of - Receipts Total ① Budgeting Balance collection from Customer to make invest of idle funds ñonssrohw , Movin §iow 81 , Crisan.rs) mssiriin activities cash major expenditures cash disbursement mséwbJb cash or collection receivables level invent low monitor sunbeams bison 2 , credit discount , dere check offer cash cash Cash on management cash invent ÑolMÑb , convertible to known amounts of cash Restricted cash : Not available for general ↳ binomial purpose hometown specific 15 grits 1070981105 * check Total available cash Less Cash : disbursement Inventory Petty cash Lorin a. ⑧ biwooaiooo9oi.in small amount * nioosoiorsmsonrns salaries selling expense Purchase of standard Fraud Account lighter income - same scandals , - Gaap IFRS Role : - priciple Based : - Note Internal Control → SOX [ us , ② Based ① ② - = ③ → ④ → Exceed add ÷ Less : Ending , PPE disbursement of available cash Borrowing Repayment interest ③ +④ =⑤→ depreciation) excluding truck deficiency ) Financing JAP, GER ] ( tax expense Total ( administrative and cash ⑤ Cash Balance : Min → on → win - - on - over hand policy cash Bal Ending Borrow 6077W disbursement § Investment . Reporting CH 08 TFRS : Thailand Financial la? UÑ ) amount Receivble Receivable = / Notes Receivable 2 loan 3 = : other Receiable current / ; Non - 51 good on , employee seller G credit of time Receivable valuation = invoi-epri-eyde-b.fi offer discount : as encourage [ moon gain ) Receiable AIC i. www.arii value Fair current Assets = Reporting cmssiooiwweooiiomwooorinosnñnioionñusioi handisers amount interest , at point of sale when performs service collected InCasH_ to No ↳ ser * period Enterprise income tax refundable mso-usi.a.nuÑ Alc receivable { / service small and medium : * that expected year AIC Recognizing . : amount to be Received to officers , com current depend written promise interest + Publicly Accountability Entity sinuation urinary Non Publicly Accountability Entity : SME → account from sale on current Assets loans : individual due from PAE 011-08> NPAE Standard Reporting customer : Account / trade 1 Receiables Analyzing + " show value Sales on Account sale ( early payment as Netreaizabevae raise on acc poss of Not acc " Being collected Receablemsmnmsrismozinw7siioinoo@nieb.B 9uaauÑ goods unaccepting may uyer ↳ credit - sale discount if RTN : g - Sales RTN and credit Note debit Note Allowance seller record 90092B£ for Un collectible accounts Receidb" Less : Allow . . Allowance \ . Dr : Bad Debt Expense Beg . Doubtful Cri Allowance for Reg by 25 Sale End Sale 500 • 25 : Net Realized Value = End Alc . sale End Receiable 500 333 IIF ← 267 Recovery debit : Credit : = End 6g 25 Beg Beg ⑤ Sale sale 40 Net Realized Value Receiable . of Un collectible AIC Receiable Asset Allowance for Doubtful Accounts Collect 333 25 25 add : . End End A / C " write off - Allowance for Doubtful 500 333 collect 100 ④ W/o Accounts 10 25.7 credit : debit : 25 Beg 15 Sale 30 A/c Rec cash End "ñnñi2Ñs ! Receiable to . 242 = Net Realized Value Account Beg sale 267 227 Allowance - ⑤ mom's Sale • Accounts Collect undo " Net Realizable Value GAAP 500 . " Net Realized Value Doubtful 100 Beg 475 Allowance for Beg . Sioux,@ ✗ > AIC Beg > oiioinefountosnuozoi.fi Contra Ñonsnngwñnm89ñ1DÑM → Doubtful debt Accounts 500 : Method Receivable start → Receiable " z Allowance for A / C ? uÑ8ÑUa&N Bad Debt Expense ( ooo invention Expense Receabl:c @ " - asset under Alc as direct write off I methods Un collectible accounts = 227 End method of % the Estimating Allowance percentage Estimate Bad Debt Expense Bad Debt Expense adj Balance = f. Fee to a ranges might sell Bat = adj . 2228 . Bank finance or w/o national 1-307 at lower price bot ↳ advantage cash first RCVD card maintain : undertake spared 6863W " " in exchange Promissory for a " note cash sales on y current 1 component | payee → note maker → note amount { money current depends non individuals - amount - date due . → interest rate ↳ computing Face value of Note valuing : J modern ✗ = - held ibÑñims&w period → Note term 1 = " maturity date 6 % ' day → months dear → → date of settlement demand on a ✗ 9% ✗ 0% ✗ ¥o ' i. morin ¥ ÷ report " → 1 = AIC Rece stated date . period areas oftime doe ion Note prorate Interest " nissaiiñibiuoioios debit Interest year count as Sydnor and Net interest Receivable : credit interest : lJWMW 102727806bnb Allowance " AK Rece as " expected collect No dr Cr . . revenue Realizable value = No of omaiperiod + If credit a.ro.iim.e.est@mi.m, 12% Allowance Note Recei able Borrow msn.mn at the end of an pay n } lend exceed limit period 1 adjustment to account payee must make L fee understate o f Dishonor of Notes Receivable stop interest and move to AIR her unable to transition 1¥ Bad debt expense as 9% in term price years 12%120 e. days 9 Annual InÑtfTime of maturity Months ii. / Interest - " - - Rate If 7, of payable short term = recording Disposing - company com com on . - date of Note Dt Rece : " - : 90%0^0^0 used when demand 1 at definite time could be → → quickly written promise to pay a → W/o for its service . collection 1 losses cash RCVD + customer : : 2-at issue same as Balance = sale " card pay . Bad debt ruins } i. 2728 Bat 2228 Note Receiable credit Bat 500 IIÑOD 222821 500 = " record { . credit Retailer COMPANY Bal von direct collect from customer factor i Unadj 2728 adj unadj Bat - Allowance for doubtful Acc 1700 ( mourns@9 UÑ ) Receivable D- 1C Bad Debt Expense Receivable A/ C y selling Bad balance doom Disposition sale Bal oijoiwdsnoic.rs adj balance allowance existing - Bat 528 adj count at due date , ELM expected losses model Allowance for doubtful Acc bnadi no: won ññ&••Ñq • omw on collectible 1700 n'mend cat interest Bls ↳ Part Presented In function normal of Current Asset trade account and notes received Financing Receiable Restricted financing others Receiable Receiable total Receiable Less : Allowance Netreceiable for doubtful debt RIC realized value) ( Net Receivables Managing policy credit , to extend credit determine to whom i Establish 2 ③ payment period ↳ oisnoqnomsiiuii.rs Reg payment period , monomial - → sohedual prepare → - Evaluate the liquidity Account Receiable " of managers Accelerate " cash , IFRS Net Average very late / Not at all financial health Conti . liaison + Rat:o) credit sales Receivable 365 Account Receiable Turnover " size . mansion sell uÑ characteristic → + n.int as + identifies problem account note to financial statement = Receipts competitors of cash inflow Net Accounts GAAP → w/ = com IFRS , : monthly timing ( count from " cash Average collection period to Good invasionñ98hsmsbñvuÑ 5 references will loss sales : loose provide info abt collection experience Receiable turnover ooumswdowa.net P Good tight too need to consistent concentrations of credit Risk ④ > too → a collection monitor > check BG → needed cash ?⃝ Long-lived atoq physical su [ Not Plant asset basis critical company 's / tons no moms I success - n°16840726 - Valuation Cotonou oiwn.nl consists of an value Revenue noo + price 2 , of asset given expenditure ( , upgrade Expenditure ^" Repair : 3 Dr : , tax , liens for ready Debit use attorney's title and estate broker's Land Account : fee dioxin airmen land on limiter used : Driveways parking , - lots , a. so fences , years landscaping , underground sprinter purchase price - attorney's fee costs closing title insurance purchase , real estate broke's commission Remodeling Replace / Repairing contract price consturotion payment for architects fee Building Building permit - A E*penne - insp3h01 , vehicle license PPE) land price i. e. PPE ☒ are depre + Building insurance 9 4 v00 ' Excavation - interest * cost BunionsRED including in cost of Equipment Building ' to cash purchase price PIL statement in → maintain of Maintenance increase Plant assets real cost received or lliimmiiltvuseedd → mso-aoiun.waoor.PE make land improvement µ + open - the Opr Insurance Repair Expense capacity } efficiency ⇐ peg.w.es useful life add cost of = paining + clearing lettering + Freight charges unit productive , sale taxes efficiency Additions and Improvement cost to closing plant asset account productive life debit 2 a function Expenditures and use cost cash purchase Ñonñ98swMÑw) ÑiDwiaÉoo oiiioowsn Ordinary intended 2 Capital Expenditures cost included in 1 up Capital expenditure contusion nos * acquire a.ooiiondouoniionooi : limited No necessary i. e. cost incurred to acquire i. e. fuel its sina.dwntwsiiswloisi.sn an . Revenue 1 ready for to > equivalent ↳ fair necessary - ammonia shoots paid cash 2 - expenditures assist and make it cash i All → , land all to a , - Equipment b sale] for Land service prov ice are → propety Plant Tthhee ⑤☒IT off PPPEE Resources = stance for used in operation [ mm Expenditure Plant Asset → -58 I 20 PPE Assets PPE capital expenditure µ • by purchaser assemb.mg , installing during , Hs pair lease ! contractual agreement to at use an asset for a agreement or no down payment "& asset period of time price Reduced risk of obsolescence little of test ' , : 1012mn noooMannion shared tax " Reported " statement Income In for Depreciation { is → asset PPE cost national and the cos → to systemic the notes revenue - not Equipment Building land - - Mh⑨⑥ ' - , - . . useful life Residual ability Mgµq salvage 57h7 cost of PPE Accv Pep - Value V77 Book value = algorithmwww.8mobiiz years last year Book value Not cat = " cost value years 20 = " useful life over 5 financial statement asset valuation production = of the ⑧ ⑧ expense manner of asset will decline v8 in useful life in over cost allocation process → disclosure ñi%wm allocating of process + value Salvage = Accumulated Depreciation on Bowdon ↳ in Balance sheet : Less from PPE ASSET cost value methods Depreciation cost straight ① line - amount same purchased •,, → → change ① change - " year in future periods in Rate Net cost ② = Revenue • Book Disposal onn Cr . . gain ① sell loss ② Retirement ③ exchange asset → → ÑÑ non account cash Book > loss of Disposal = crown book as loss on - Activity cost per unit on , activity cost - * salvage : avoid → to msoiouoiinuurnoas → Permanent overstating declines " Record in PIL statment > cash Record year applied to Book Value adjust hid oiañiubniñu date 100 = oinonwmoo.sn 96N , based , / 89yd / Gain / Deppe Acar ↳ line ,, Aaudepre " - gu.my aging ,☐zgjµz agg future up to record depreciation Dr - ↳ onto value him'Ñ Rate . unit of ↳ 's to → Impairment + cost Rate 3 Book value = Book value heir arñn Balance - Straight head value depp acc - Rate v00 depreciation Expense Accelerated 26% = depreciation = value Not effect to previous But current . ↳ Life or salvage Change ① Cal Declining Depreciation Rates l 2 part;a , ma⑤owÑoow7 ↳ prorate Revising µ every year Rate + 2 ↳ sina.nzriwn.no → value salvage - disposal asset as others expenses fair value market price asset in the fair value of assets goop assets Intangible → 7ÑÑÑoMb Right from Result , ownership privileges and competitive advanages of long-lived asset Not possess physical Amortize life Limited Accounting • ① patents for Right • R Expense any • legal • fee cast incurred life ✗ ③ a company 2 Giver • Granted for life • license o Right owner creator + 70 years Amor tied Moon @ long-lived & Asset on 208 noioiooi ~ franchisor limited life + franchisee amortied to expend on Dow only recorded • • amortize Tradename between wz Goodwill 5 of , Legal protection agreement • Copyright :Jv§nÉ accu Franchises 4 msoo8n8OMS : / limited No • • developing momma asset account Trademarks product new D cost and by to expense Amortize Amortization No that often lead to patents / ☒ purchasing cost of • Indefinite years 20 ↳ : or : 8nFDMS ' Dr substance when an entire buis is purchased Balance sheet cash : 000 . Property Plant and , Equipment land 000 Building Less : xxx Accumulated depreciation - Equipment Less : total depreciation - Equipment ✗✗ 8 000 PPE 000 assets Patent 000 Trademark 000 Goodwill 000 total Intangible total assets MA l win assets 000 000 of assets ;wñonHs urn ROA : assets > indicates the amount evooonoooonrsoos of net income Return Net Income on = generate each dollar of assets Average total assets Asset µ by g- good = Asset / ooo xxx xxx Accumulated Intangible Building i units bionics un $ Good → How Asset Net sales efficiently a company uses assets to gene rat sale = turnover Average total assets ⑦ • • • Profit margin Profit ↳ margin How effective is turn = Net income Net a company sale into income sales : gown;KÑDÑb ✗ asset turnover = ROA