Urgent need help in a!!!! (B)Explain THREE (3) rcasons why there can be significant differences between the profitreported in the income statement and the amount of cash balance shown in the statement ofcash flows, Provide ONE (1) example of each to support your answer.(a)(b)Explain the concept of allowance for unrealised profit account.

The income statement is prepared to find the net income or loss incurred during the period and cash…

Answered: B) Explain THREE (3) reasons why there…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 23MC: Which of the following accounts would not be reported under revenue on a simple income statement? A....

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With the use of three different examples, explain why cash and profit are not the same thing. Your answer should refer to relevant accounting concepts
You have been asked to prepare the statement of cash flows for Neo Ltd for the year ended 30 November 2021. The most recent income statement and statement of financial position (with comparatives for the previous year) of Neo Ltd are set out below. Neo Ltd – Income Statement for the year ended 30 November 2021 Revenue 104,567 Cost of sales (71,358) Gross profit 33,209 Profit on disposal of property, plant and equipment 106 33,315 Distribution costs (12,789) Administrative expenses (16,371) Profit from operations 4,155 Finance costs (608) Profit before tax 3,547 Тах (726) Profit for the period 2,821 Neo Ltd – Statements of financial position as at 30 November 2021 2020 £00 £000 ASSETS Non-current assets Property, plant and equipment 42,306 30,832 Current assets 7,256 Inventories Trade and other 11,378 receivables Cash and cash 9,736 4,175 equivalents 905 12,336 43,168 21,114 Total assets 63,420 EQUITY AND LIABILITIES Equity Ordinary share capital Share premium Retained earnings Total…
Accounting type Question: The basis of income Measurement is A. Matching concept B. Accounting Period concept C. Money Measurement concept D. Cost concept
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QUESTION How much shall be presented as profit/loss on the face of the income statement? USE NEGATIVE SIGN IF LOSS
Which of the following accounts normally has a debitbalance?a. Unearned Revenueb. Rent Expensec. Retained Earningsd. Sales Revenue
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Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once or not at all.) Economic entity assumption g. Matching principle Going concern assumption h. Full disclosure principle Monetary unit assumption i. Relevance characteristic Periodicity assumption j. Reliability characteristic Historical cost principle k. Consistency characteristic Revenue recognition principle ____ 1. Stable-dollar assumption (do not use historical cost principle). ____ 2. Earning process completed and realized or realizable. ____ 3. Presentation of error-free information with representational faithfulness. ____ 4. Yearly financial reports. ____ 5. Accruals and deferrals in the adjusting and closing process. (Do not use going concern.) ____ 6. Useful standard measuring unit for business…

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B) Explain THREE (3) reasons why there can be significant differences between the profit a) reported in the income statement and the amount of cash balance shown in the statement of cash flows, Provide ONE (1) example offeach to suppol your answer.