Accounting equation : Accounting equation represents the mathematical relationship between assets, liabilities and equity. According to this equation, assets are equal to the sum of liabilities and equity. The formal for basic accounting equation is as follows: Assets = Liabilities + Equity Requirement-1: To Calculate: The amount of earnings retained for the year
Accounting equation : Accounting equation represents the mathematical relationship between assets, liabilities and equity. According to this equation, assets are equal to the sum of liabilities and equity. The formal for basic accounting equation is as follows: Assets = Liabilities + Equity Requirement-1: To Calculate: The amount of earnings retained for the year
Solution Summary: The author explains the accounting equation, which represents the mathematical relationship between assets, liabilities, and equity.
Accounting equation represents the mathematical relationship between assets, liabilities and equity. According to this equation, assets are equal to the sum of liabilities and equity. The formal for basic accounting equation is as follows:
Assets = Liabilities + Equity
Requirement-1:
To Calculate:
The amount of earnings retained for the year
To determine
Concept Introduction:
Accounting equation:
Accounting equation represents the mathematical relationship between assets, liabilities and equity. According to this equation, assets are equal to the sum of liabilities and equity. The formal for basic accounting equation is as follows:
Assets = Liabilities + Equity
Requirement-2:
To Calculate:
The amount of Net Cash flow used for investing activities for the year
What is the net increase in operation income from bio-bricks?
Your firm has been the auditor of Caribild Products, a listed company, for a number of years. The engagement partner has asked you to describe the matters you would consider when planning the audit for the year ended 31January 2022.During recent visit to the company you obtained the following information:(a) The management accounts for the 10 months to 30 November 2021 show a revenue of $260 million andprofit before tax of $8 million. Assume sales and profits accrue evenly throughout the year. In the yearended 31 January 2021 Caribild Products had sales of $220 million and profit before tax of $16 million.(b) The company installed a new computerised inventory control system which has operated from 1 June 2021. As the inventory control system records inventory movements and current inventory quantities, thecompany is proposing:(i) To use the inventory quantities on the computer to value the inventory at the year-end(ii) Not to carry out an inventory count at the year-end(c) You are…