Easily Remove Mandatory Field from the 12 Month Income Statement

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How to Remove Mandatory Field from the 12 Month Income Statement

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lets go back to the example that we used in the previous module that Bacall company the business is almost ready to start trading it has completed two essential actions summarized in the opening balance sheet firstly it has pulled together financial resources 150,000 euro in fixed funds comprising capital plus financial liabilities and 45,000 euro in short-term funds in other words funds repayable in the short term the total of these sources of funds therefore amounts to 195 thousand euro secondly what are the uses of these sources of funds in other words how have they been employed Bacall acquired 90,000 euro of equipment and 45,000 euro of initial stock it even has cash left over a real textbook case the business has also opened a shop and taken on a Salesman so trading can begin once the company has been set up it will pursue its economic objectives which are related to its core business in our example Bacall is a clothing sales business its operating cycle is as follows the compan

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How are discontinuing operations to be reported on an income statement?

Discontinued operations is an accounting term for parts of a firms operations that have been divested or shut down. They are reported on the income statement as a separate entry from continuing operations.

How do you report discontinued operations on an income statement?

Income and expenses related to discontinued operations can be found on line items on a companys income statement, below Continuing Operations Income and above Net Income.

How do you record discontinued operations?

The discontinued operations section must report on the income and gain/loss of the discontinued component, net of income tax. The assets and liabilities of discontinued operations must be classified as held-for-sale when it meets the criteria and must be classified as current assets in the balance sheet.

How do you break down an income statement?

Your income statement follows a linear path, from top line to bottom line. Think of the top line as a rough draft of the money youve madeyour total revenue, before taking into account any expensesand your bottom line as a final draftthe profit you earned after taking account of all expenses.

What two income statement accounts must be eliminated in entry b?

The investment in subsidiary and income from subsidiary accounts must be eliminated each time consolidated financial statements are prepared.

Is it mandatory to round off financial statements?

Rounding off Except in the case of the first Financial Statements laid before the Company (after its incorporation) the corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown in the Financial Statements including notes shall also be given.

How should a discontinued operation be presented in the financial statements?

In the period(s) that a discontinued operation is classified as held for sale and for all prior periods presented, the assets and liabilities of the discontinued operation shall be presented separately in the asset and liability sections, respectively, of the statement of financial position.

Which of the following is an example of discontinued operations reported in a companys income statement?

Examples of discontinued operations could include: Closure of unprofitable division. Redundancy due to merger. Sale of a product line.

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