By Duane R. Milano
REA's necessities offer quickly and simple entry to severe details in various varied fields, starting from the main uncomplicated to the main complex. As its identify implies, those concise, finished research publications summarize the necessities of the sector coated. necessities are valuable whilst getting ready for checks, doing homework and may stay a long-lasting reference resource for college students, lecturers, and execs. Accounting II contains present liabilities, long term liabilities, bonds, partnerships, firms, gains and dividends, consolidations, assertion of money flows, and fiscal assertion research.
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2. 5 WARRANTIES A business may have liabilities that, while quite real, can only be estimated. A company which sells appliances with warranties can incur this kind of liability. In such situations, the company guarantees free repair within a specified period of time in the event of a problem with their product. The estimate of the probable expense of such repairs may be based on prior experience. In such a case, the liability for warranties might be a percentage of total sales in a given period.
Appropriations need not be formalized in the financial statements in the form of journal entries. They can just be noted in footnotes that contain the details of the appropriation. 7 CASH DIVIDENDS Cash dividends are a distribution of corporate earnings to the stockholders in the form of cash. This is the most usual form of dividends. There are three important dates involved with cash dividends. They are: Date of declaration–this is the date the formal announcement of a cash dividend was made. Date of record–people owning shares on this date will receive the cash dividend.
It would be much to the disadvantage for all concerned if an unqualified plan were set up. To the employer, the contributions would not be a tax expense. As a result of that, the employer will be likely to pass this cost on to the employees in the form of lower compensation. 3 FUNDED AND UNFUNDED A funded plan is one in which the employer makes pension payments to an independent funding agency. This agency is then responsible for accounting for all contributions to and disbursements from the fund.
Accounting II Essentials by Duane R. Milano