Big Chemical Encyclopedia

Chemical substances, components, reactions, process design ...

Articles Figures Tables About

Accounting period

The annual amount of tax Aff included in Eq. (9-2) does not necessarily correspond to the annual cash income Ac/ in the same year. The tax payments in Eq. (9-2) should be those actually paid in that year. In the United States, companies pay about 80 percent of the tax on estimated current-year earnings in the same year. In the United Kingdom, companies do not pay tax until at least 9 months after the end of the accounting period, which, for the most part, amounts to paying tax on the previous year s earnings. When assessing projects for different countries, engineers should acquaint themselves with the tax situation in those countries. [Pg.804]

If company A then sells 100,000 worth of product that is paid for by check, the accounting entries are credit the sales account 100,000, and debit the bank account 100,000. The bank account will now have a debit balance of ( 100,000 — 50,000) = 50,000, and the sales account a credit balance of 100,000, if this happens to be the only sale to date in the accounting period. [Pg.837]

Closing the Books At the end of the accounting period, the individual accounts are closed by balancing each in accordance with Eq. (9-126). The balances are transferred either to the balance sheet in the case of capital expenditure or to the income statement in the case of revenue expenditure. An alternative name for the balance sheet is the position statement the income statement is also caUed the trading and profit-and-loss account. [Pg.837]

Revenue expenditure includes the direct material costs and direct labor costs incurred in the manufac ture of a produc t, together with the associated overheads that include maintenance of the plant. Since these expenses are debits, the debit balance for a given accounting period is obtained by adding up the debit balances from each individual expenditure account. Similarly, since revenues from sales and other income are credits, the credit balance for a given accounting period is obtained by adding up the credit balances from each individual income or revenue account. [Pg.838]

To ascertain profit or loss (calculated as income minus expenditure for a given accounting period), income and expenditure must be matched. For example, any rent paid in advance beyond the current accounting period should not be included in the profit or loss calculation. Similarly, goods sold but not yet paid for in a given accounting period should not be included in the revenue total for that period. [Pg.838]

An income statement such as the one shown in Table 9-16 is used to obtain the profit or loss for a given period. The debit and credit balances of all the accounts that do not represent expenditure or income for a given accounting period are entered as assets and liabilities in a balance sheet such as that shown in Table 9-17. [Pg.838]

Concept 5. Matching means that the revenue in a given accounting period should correspond to the expenses for that accounting period. [Pg.838]

Accountants regard assets as resources that have not yet been used up. Assets are normally shown on the balance sheet at cost minus accumulated depreciation. In this sense, the depreciation charge for an accounting period is the means of converting a part of an asset into a current expenditure that is then listed as an expense in the income statement. [Pg.839]

In practice there are two major classifications of cost accounting systems, job costing and process costing. In the former, costs are col-lec ted for each job or batch irrespective of the accounting period. This system is normally used in construction work. Process costing is normally used in continuous and semicontinuous processes. Costs are collected for a specific accounting period. [Pg.846]

However, in a given accounting period the sales volume mav differ from the volume of production. In this case, the inventoiy of finished product 7i at the beginning of the accounting period will differ from... [Pg.847]

Changes in working capital ACn c iri. n annual accounting period can be represented by... [Pg.851]

General Considerations Manufacturing costs are best considered in the context of the manufacturing, trading, and profit-and-loss accounts. Typical examples of these are shown in Tables 9-3.5, 9-36, and 9-37, respec tively. These are based on the conventional accountancy period of 1 year. [Pg.853]

This is the amount of cash passing through the hands of an organization in an accounting period. The cash flow statement analyses the sources and the disposition of cash during a given period. [Pg.1028]

Until information can be compared with similarly classified data its use must be limited. In order to plan ahead, a business will prepare a strategy or budget for the next trading year and probably several years thereafter, with that for the next year broken down into the business s scheme of accounting periods. [Pg.1030]

Since all physical assets of an industrial facility decrease in value with age, it is normal practice to make periodic charges against earnings so as to distribute the first cost of the facility over its expected service life. This depreciation expense as detailed in Chap. 9, unlike most other expenses, entails no current outlay of cash. Thus, in a given accounting period, a firm has available, in addition to the net profit, additional funds corresponding to the depreciation expense. This cash is capital recovery, a partial regeneration of the first cost of the physical assets. [Pg.6]

Financial projections are often one of the most scrutinized aspects of an innovation Project Charter, especially when executives are trying to select which few innovation projects to fund. Almost all financial projections include estimates of revenue. Or, you can estimate profitability using Innovation Financial Management (Technique 11). Either way, the financial projections listed on the Project Charter should be estimated from the point your innovation will be available to customers, and should align with the company s current accounting periodicity (monthly, quarterly, annually). [Pg.64]

Balaban, A.T. (1986a). Chemical Graphs. Part 48. Topological Index J for Heteroatom-Containing Molecules Taking into Account Periodicities of Element Properties. MATCH (Comm. Math.Comp.Chem.), 21,115-122. [Pg.530]

Balaban, A.T. (1986a) Chemical graphs. 48. Topological index J for heteroatom-containing molecules taking into account periodicities of element properties. MATCH Commun. Math. Comput. Chem., 21, 115-122. [Pg.980]

Accounting standards require firms to record as current expenditures all outlays for R D, advertising, and promotion when in reality these expenditures are investments whose payoffs may be delayed or extended into future accounting periods. The value of the intangible assets produced by these investments is too uncertain for use in accounting statements. Thus, the book value of assets in a company s financial statement underestimates the true value of assets, especially when these investments are important components of the company s activities, as in the pharmaceutical industry (62,78,80). [Pg.96]

Fiscal year Any accounting period of 12 successive calendar months, or 52 weeks, or 365 days, used by an organization for financial reporting. [Pg.320]

Working capital The excess of current assets over current liabilities. Where current assets and liabilities are cash and short-term securities and current liabilities are debts owed in the current accounting period. [Pg.322]


See other pages where Accounting period is mentioned: [Pg.838]    [Pg.839]    [Pg.839]    [Pg.1031]    [Pg.211]    [Pg.251]    [Pg.116]    [Pg.332]    [Pg.628]    [Pg.662]    [Pg.663]    [Pg.663]    [Pg.149]    [Pg.237]    [Pg.144]    [Pg.808]   
See also in sourсe #XX -- [ Pg.218 ]




SEARCH



© 2024 chempedia.info