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how is the income statement (I/S) related to the balance sheet (B/S)

answer structure: definition, explanationdefinition: I/S tells you what happened throughout the year, B/S is a snapshot of financial position of a firm at a specific dateexplanation: bottom line on I/S (n...

Answered by Hue C. • Accounting tutor

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What are the methods of calculating depreciation?

There are 2 ways in calculating depreciation: Straight Line method and Reducing Balance method. Straight Line method is simple to calculate ( (cost of the asset - Residual value) / Useful life ). When cal...

Answered by Faizan A. • Accounting tutor

1866 Views

Discuss the relative merits of a rights issue of ordinary shares and a bonus issue of ordinary shares

• At shareholder meetings, a company agrees on the number of total shares authorised. This is the maximum number of shares the company can issue; key because it dilutes other shareholders, affects the fun...

Answered by Andreea A. • Accounting tutor

2773 Views

What are the three main elements of Financial Accounts?

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

Answered by Anish P. • Accounting tutor

2064 Views

What is an IAS?

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...

Answered by Rose C. • Accounting tutor

1926 Views