Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / anudeep
cash flow statement is prepared according to accounting
standard 3.
in cash flow we need to clasify accounting information into
operating activities and invesment activities and financial
activities
before going to prapare first we need to understand what is
the motive of the cash flow statement
cash flow statement can be prepared by using either direct
method or indirect method
but accounting standard 3 recommends only indirect method
but in case of insurance companies as per insurance
companies act,1938 cash flow statement should be prapared
acording to direct method.
for more details see accounting standard 3
| Is This Answer Correct ? | 10 Yes | 0 No |
Post New Answer View All Answers
what is book building
Define public accounting?
What is accounting chart of accounts?
2. A budgeted profit statement of a company working at 75% capacity is provided to you 2 below, Sales 9,000 units at Rs. 32 Rs. 2,88,000 Less: Direct materials Rs. 54,000 Direct wages 72,000 Production overhead: fixed 42,000 variable 18,000 1,86,000 Gross profit 1,02,000 Less: Administration, selling and distribution costs: fixed 36,000 varying with sales volume 27,000 63,000 Net profit 39,000 You are required to: (a) Calculate the breakeven point in units and in value. (b) It has been estimated that: (i) if the selling price per unit were reduced to Rs. 28, the increased demand would utilise 90% of the company's capacity without any additional advertising expenditure, and (ii) to attract sufficient demand to utilise full capacity would require a 15% reduction in the current selling price and a Rs. 5,000 special advertising campaign. You are required to present a statement showing the effect of the two alternatives compared with the original budget and to advise management which of the three possible plans ought to be adopted, i.e., the original budget plan or (i) above or (ii) above. (c) An independent market research study shows that by spending Rs. 15,000 on a special advertising campaign, the company could operate at full capacity and maintain the selling price at Rs. 32 per unit. You are required to: (i) Advise management whether this proposal should be adopted.
Cash bill of sale so the company can deduct the amount.
Explain me scrap value in accounting?
what are the basic elements to prepare a quarterly information system and how to calculate that items?
What is short term solvency ratio?
What are the characteristic features of financial accounting?
What is fractional code and how can i get a fractional code for a particular account?
in tally software payroll vouchers option is there for what purpose it is used ? please tell me friends.
we had company we provide work others they deducted tds how to pass entries in my company please tell me
If A Company pays amount thru bank for a supplier deducting tds on behalf of B company. Accounting entries to be made in company A and B
Tax Invoice: Client had settled Rs. 5,25,000/- {after deducting TDS @ 10% from base/gross amount and then added (+) Service Tax Amount (15%)} which equals to Rs. 525000/- (Settled Amount by Client). Please let me know what will be gross amount and total invoice amount including Service Tax????
How can you explain the basic accounting equation?
