Question

3. Provide examples of non-current liabilities and how do them impact the firm and how are they reflected in the financial statements.

4, Provide examples of information provided by the financial statements other than the actual dollar amount.

Answer 1

3 -- LONG TERM BORROWINGS(LOANS,DEBENTURES,BONDS)

DEFERRED TAX LIABILITY

PRODUCT WARRANTIES

These are some of the non current liabilities.The liabilities or assets are classified as current and non current is on the basis of going concern concept. ie the assumption is that the company will run for a long period of time. Here liabilities classified as non current is on the basis of its life. If it is exist for a long period of time, ie more than 1 year,then we can categorised it in the non current asset. Its effect will be in the firm for a long period of time. So these are comes under the liability side of balance sheet.While preparing financial statement , the asset side and the liability side should be tally.

4) PROFIT AND LOSS ACCOUNT

SALARIES

REPAIRS

DEPRECIATION

BAD DEBT

ADMINISTRATIVE EXPENSES

COMMISSION, RENT

MISCELLANEOUS EXPENSES

GROSS PROFIT

NET PROFIT

INTERESTS ETC

BALANCE SHEET

INVESTMENTS

ASSETS

GOODWILL

DEBTORS

CLOSING STOCK

BILLS RECEIVABLE

SHARE CAPITAL

DRAWINGS

DEBENTURES

BONDS

LOANS

BILLS PAYABLES

RESERVES AND SURPLUS

OUTSTANDING EXPENSES

ADVANCE RECEIVED

CASH FLOW STATEMENT

CASH FROM OPERATING ACTIVITY

CASH FROM INVESTING ACTIVITY

CASH FROM FINANCING ACTIVITY