Sales Discounts 7,928 Cost of Merchandise Sold 445,174 Advertising Expense 9,113 Local municipal license 2,750 Depreciation Expense - Office Equipment Depreciation Expense - Delivery Van 3,000 3,875 Delivery Van Repairs & Maintenance Sales Salaries Expense Sales Supplies Expense 3,125 41,563 8,560 Insurance Expense 5,625 Office Salaries Expense 12,162 Office Supplies Expense Rental Expense Utilities Expense 3,862 10,625 3,237 Interest Expense 1,875 ΤΟΤΑL RM2.497.662 RM2.497.662

Q: What formula is used to determine net profit

A: Net profit is the actual income earned by an organization after paying all the expenses. It is…

Q: Describe term net asset value (NAV)?

A: Net asset value (NAV): It describes an entity's net worth, which is measured as the complete value…

Q: Briefly explain the difference between gross profit, net profit and EBIT.

A: Gross Profit is computed by deducting Cost of goods sold from Sales. Gross profit is the profit a…

Q: How to correctly find the operating profit? Show an example please.

A: The calculation of operating profit is an important aspect of understanding the financial position…

Q: Define Gross Profit Method.

A: Definition:   Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: Distinguish between losses from transaction exposure, operating exposure, and translation exposure?…

A: The Answer :

Q: Why profit shows as liability and loss shows as asset?

A: The assets and expenses have the debit normal balance. The liabilities and revenue have credit…

Q: Define the term Unrealized gain.

A: Investment: The act of allocating money to buy a monetary asset in order to generate wealth in the…

Q: What is meant by a ‘statement of affairs’? How can the profit or loss of atrader be ascertained with…

A: What is meant by a ‘statement of affairs’?    It refers to a statement of assets and liabilities of…

Q: What element should be assessed when considering the quality of profit and loss and balance sheet.

A: The elements are as follows: Leverage is a measurement of the business's ability to meet long-term…

Q: How does an “opportunity cost”,  subtracting from the revenue of an alternate course of action,…

A: Opportunity cost: Opportunity cost is a loss of income from one alternative if another alternative…

Q: discuss the advantages and disadvantages of residual income

A: INTRODUCTION: The excess of net income over the required minimum return is known as residual income.…

Q: What is purchase returns?

A:

Q: Define current operation income?

A: Current operation income otherwise called as operating income.Operating Income: Operating income is…

Q: Explain the accounting for gain and loss ­contingencies.

A: Contingencies:   Contingency is a situation where the outcome becomes uncertain and is resolved in…

Q: How to compute the amount of net income or net loss

A: Net Income or net loss is computed by preparing the income statement.The first step in computing the…

Q: Explain the historical cost principle and discuss its advantages and disadvantages compared to other…

A: The historical cost principle is an accounting concept that requires assets to be recorded on the…

Q: How does EVA differ from accounting profit?

A: Introduction: Economic value added is the sum of net earnings over capital costs. EVA corresponds to…

Q: What is function of expense method?

A: Organisations can opt for either of the options to prepare and report the income statement. They are…

Q: Merits and demerits of the cost value profit analysis CVP

A: Lets understand the basics. Cost volume profit analysis (CVP) is as name suggest analysis of total…

Q: Differentiate between Appraised value and Assessed value?

A: Difference between appraised value and Assessed value:Appraisal value refers to that on a specific…

Q: What is the gross profit and how do i calculate it

A: Manufacturing department profit is also known as gross profit. This profit includes only costs…

Q: What is the difference between a contribution approach income statement and a traditionalapproach…

A: Contribution Approach Income Statement: Under this approach, contribution amount is the main focus…

Q: How should changes in the estimated unguaranteedresidual value be handled by the lessor?

A:

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.