Search over 10,000 free study notes

1. Income Statement (Profit or Loss Account)2) Balance Sheet (Statement of Financial Position3) Statement of Cash flows

An IAS is an international accounting standard and is set up by the Accounting Association, which provides a set of standards that every business should comply with. This allows consistency, easy comparis...

Accounting is based on the double entry principle. This principle states that for every credit entry there must be a corresponding debit entry. This means that everything must balance out.Think of an acco...

Cost Price = 500 Year 1 = 500-75 = 425 Year 2 = 425 - 63.75 = 361.25 Year 3 = 361.25 - 54.1875 = 307.0625 Therefore the Net Book Value at the end of year 3 will be £307.06

A common way to answer this question is to think about where the money comes from and where does it go. For example, if the company buys equipment by cheque, then it shows the money comes out from the ban...