I need help with a fiancial accounting question?
The sales are €1,239,600(31-12-07). the question says that €18,000 in respect of the disposal of an item of plant which was purchased in 2005 for €28,000. Please help! Should I adjust the sales figure and is the depreciation €10,000??
Investing - 2 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
There has to be more to the question. This doesn't make sense. The 10,000 would be a loss, not depreciation.
Answer 2 :
The disposal is not part of operations, so don't adjust the sales figure. The plant item should have had depreciation expense in 2005, 2006, and 2007 (through the date it was sold) already accounted for prior to 2007 year-end adjustments, therefore there is no need for depreciation expense on it at year-end.
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Tuesday, August 28, 2012
Tuesday, August 14, 2012
what is meant by management accounting techniques?
what is meant by management accounting techniques?
Other - Business & Finance - 1 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Hello, (ANS) Management Accounting techniques are used to control a company with the focus on managing the flow of its money. So MA looks at how the company can be managed more successfully by examining what the company spends (what its costs are, salarys, services, products, assetts like computers & cars,etc) What the turn over of the company is, how much profit it made in the financial year, what it cost to make that level of profit and so forth. **In the simplest terms its how to control a company by controlling its money flows. IR
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Other - Business & Finance - 1 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Hello, (ANS) Management Accounting techniques are used to control a company with the focus on managing the flow of its money. So MA looks at how the company can be managed more successfully by examining what the company spends (what its costs are, salarys, services, products, assetts like computers & cars,etc) What the turn over of the company is, how much profit it made in the financial year, what it cost to make that level of profit and so forth. **In the simplest terms its how to control a company by controlling its money flows. IR
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Tuesday, August 7, 2012
is excel good for accounting?
is excel good for accounting?
I'm going to use a powerful accounting software! and i want to know if excel is suitable for accounting and meets all of my needs for accounting. if no so let me know your suggestion. Thanks for your help
Other - Business & Finance - 3 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Of course!!! It is the mostly used software for accounting..HECK, IT IS FOR ACCOUNTING!!!
Answer 2 :
Excel is a better spreadsheet than 99% of people need. You could at a pinch prepare accounts on it but it's better for other purposes costing, budgets and homework. It isn't an accounts package. You can download a free trial from microsoft or the free alternative and nearly as good open office suite to see what you will get. If you want a powerful accounts software you could try something like sage ( we use line 50). I suspect you need a cheaper package than that but i have no experience with those. Try downloading trial versions if you can find them.
Answer 3 :
It is perfect for accounting with all its formulas for converting vat into percentages, and sumif,countif, cell highlighting, and a thousand other things, you cannot go wrong.
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I'm going to use a powerful accounting software! and i want to know if excel is suitable for accounting and meets all of my needs for accounting. if no so let me know your suggestion. Thanks for your help
Other - Business & Finance - 3 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Of course!!! It is the mostly used software for accounting..HECK, IT IS FOR ACCOUNTING!!!
Answer 2 :
Excel is a better spreadsheet than 99% of people need. You could at a pinch prepare accounts on it but it's better for other purposes costing, budgets and homework. It isn't an accounts package. You can download a free trial from microsoft or the free alternative and nearly as good open office suite to see what you will get. If you want a powerful accounts software you could try something like sage ( we use line 50). I suspect you need a cheaper package than that but i have no experience with those. Try downloading trial versions if you can find them.
Answer 3 :
It is perfect for accounting with all its formulas for converting vat into percentages, and sumif,countif, cell highlighting, and a thousand other things, you cannot go wrong.
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Wednesday, August 1, 2012
How to account for Cost of Sales in a service industry?
How to account for Cost of Sales in a service industry?
I run a small business which is a video production company, and have a point of confusion about account records: most literature I have seen is geared towards businesses which buy stock, and sell it at a profit. That is not appropriate for me as a service industry, as stock purchases are minimal - we buy blank media but we sell those along with production services. However we do have plenty of 'cost of sales' - my question is, should these be counted as 'stock purchases' in the various conventional accounting templates? To add to the confusion, cost of sales are more often than not services themselves, such as hiring in equipment or freelance personnel, or using couriers or duplication companies. Perhaps someone could recommend a book on accounting for service industries, especially creative! As it's very annoying never fitting in with examples books give..... But if someone could just give me an idea of how to analyse those expenses I'd be very grateful.... Ta! Thanks! Jay A's answer, though amusing, is wrong. He is referring to fixed costs. Which are separate from stock purchases, which are a cost of sale factor.
Other - Business & Finance - 2 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Cost of sales has nothing to do with stock purhase. The cost of sales is the cost of paying your employee's, your rent factor ( taxes, rent, utiities, etc. and your interest payed on your inventory). Add all these things up and they are your cost of sales. If you need someone to manage your business for you, and it sounds like you do, give me a call.
Answer 2 :
a cost of sale is a direct cost of something in order to make a sale as rightly stated by urself it is mainly attributed to purchase of stock for resale along with such costs as packaging and carriage. with regards to your business, what do you have to buy in order to produce these videos? any consumable items like dvds, tapes, etc.. if your purely a service business then it maybe you dont have any cost of sale and all you costs are fixed costs. would need a bit more info on the types of expenses incurred in order to see if any can be classed as cost of sale. at the end of the day it doesnt really make much diff as its really only for disclosure purposes in accounts and on tax returns etc.. best thing to do is buy sage line 50 and do it on the computer, this has all the codes of where to put expenses and does all the reporting u need. visit www.sae.co.uk . it would cost you about £150 depending on what package u go for.
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I run a small business which is a video production company, and have a point of confusion about account records: most literature I have seen is geared towards businesses which buy stock, and sell it at a profit. That is not appropriate for me as a service industry, as stock purchases are minimal - we buy blank media but we sell those along with production services. However we do have plenty of 'cost of sales' - my question is, should these be counted as 'stock purchases' in the various conventional accounting templates? To add to the confusion, cost of sales are more often than not services themselves, such as hiring in equipment or freelance personnel, or using couriers or duplication companies. Perhaps someone could recommend a book on accounting for service industries, especially creative! As it's very annoying never fitting in with examples books give..... But if someone could just give me an idea of how to analyse those expenses I'd be very grateful.... Ta! Thanks! Jay A's answer, though amusing, is wrong. He is referring to fixed costs. Which are separate from stock purchases, which are a cost of sale factor.
Other - Business & Finance - 2 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Cost of sales has nothing to do with stock purhase. The cost of sales is the cost of paying your employee's, your rent factor ( taxes, rent, utiities, etc. and your interest payed on your inventory). Add all these things up and they are your cost of sales. If you need someone to manage your business for you, and it sounds like you do, give me a call.
Answer 2 :
a cost of sale is a direct cost of something in order to make a sale as rightly stated by urself it is mainly attributed to purchase of stock for resale along with such costs as packaging and carriage. with regards to your business, what do you have to buy in order to produce these videos? any consumable items like dvds, tapes, etc.. if your purely a service business then it maybe you dont have any cost of sale and all you costs are fixed costs. would need a bit more info on the types of expenses incurred in order to see if any can be classed as cost of sale. at the end of the day it doesnt really make much diff as its really only for disclosure purposes in accounts and on tax returns etc.. best thing to do is buy sage line 50 and do it on the computer, this has all the codes of where to put expenses and does all the reporting u need. visit www.sae.co.uk . it would cost you about £150 depending on what package u go for.
Read more other entries :
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