Hnd Account Report

Equity capital represents money put up and owned by shareholders. This money can be used to fund projects and other opportunities under the auspice of creating greater value. This type of capital is typically the most expensive. In order to attract

Profits earned or losses incurred by the corporation. Profits retained belong to the common shareholders and the share value increases accordingly.

Mobile Phone Repair Service could consider bank overdraft to be able to survive. Overdraft helps business to overcome the difficulties throughout the year because they are easy and quick arrange, it provides good cash flow backup with the minimum Struggle. The advantage of bank overdraft is the interest is only paid on amounts borrowed also it’s flexible for Mobile Phone Repair Service. However, the disadvantage of bank overdraft is that it cannot be used for large borrowing also the business can face large charges if they go over the agreed overdraft time period, therefore, the manager should monitor the overdraft time period to be on the safe

Retained earnings will deprive the shareholder’s opportunity to reinvest the dividends in stock or bonds. So the shareholders are given the same amount as they would have received as retained earnings through dividends and so in such case the company incurs a cost for retaining the earnings.

PROFIT RETENTION- The company’s profit can be used in two ways. The profit can either be invested in the business or it will be paid out to the shareholders as dividends. Dividends are based upon on the shareholders stake.

Debit Retained Earnings $96,000; credit Common Stock Dividend Distributable $80,000; credit Paid-In Capital in Excess of Par Value, Common Stock $16,000.

Equity Capital: represents the risk capital staked by investors through the purchase of a company’s stock.

The common stock is a security that represents ownership in a corporation. It is calculated below.

Retained Earnings Statement shows amounts and causes of changes in retained earnings during the period. Time period is the same as that covered by the income statement. Users can evaluate dividend payment practices. This statement shows the changes in the shareholders’ equity account. The first line item is the beginning balance for common stock. The amount of newly issued common stock is added to the

Retained earnings represent the amount a company has left after it has paid all its expenses, taxes, and dividends. A company can return all the cash it has left after it has taken care of its obligations, but that would handicap its efforts to expand operations, make

Taxes are the dollars that we pay to government to supply the services that are not or can not be provided through the free enterprise system. Taxes have been around since the beginning of organized societies. They come in various forms. Most common are income taxes both federal and local government. These taxes are assessed on the amount of income a person earns. Other taxes come in the form of user taxes; these taxes are imposed on the people that are using the goods being taxed, such as gas tax, alcohol tax, sales tax, and luxury taxes. Property taxes make up the major revenues for local and city governments. Furthering the burden of taxation are taxes that are attached to such bills as utility

Taxation is a levy or a charge imposed by a government on its citizens to raise revenue that finances public spending. The government of every country of the

Tax system is a legal system of imposing and collecting taxes from the citizens of the country. As it has been stated by Albert Einstein, the hardest task in the world is to understand the tax system of a country. The United States’ tax system is so complicated that its tax code contains almost 3 million words and 6,000 pages. Moreover, the taxes implied by city and state governments add more complexity to the federal taxation system. In this case, we do not need to understand the complexity of tax code system in order to get acquainted with the significant role of taxes in American society.

I’ve summed up the introduction of Taxation to these slight words. Taxation is defined as a way that the government able to generate or collect revenue from the citizen of one’s nation through different sources. As what I’ve learned from Taxation course that there are two types of taxation, direct which are paid by the taxpayer directly to the government, and indirect which are collected by an intermediary (like a retail store) from the consumer. The intermediary who will file the tax return later and forward the amount of the money to the government with the return. This tax is applicable to organizations and individuals. In this reflection, I would like to highlight what I learned of business and individual taxation, the experience on working with a group for the project and what challenges I faced and how I was able to get past.

Trade credit is the practice of purchasing goods now and paying for them later. Trade credit is widely used and “is the least expensive and most convenient form of short-term financing” (McHugh, McHugh & Nickels, 1999, p. 573). When a company purchases goods on credit an invoice is received outlining the terms of repayment. An invoice contains terms such as 2/10, net 30. The total bill is due in 30 days, but the supplier has extended a discount if the amount is paid in full within 10 days. Finance managers use the information on the invoice to perform an analysis to find out if the discount is worth paying the invoice in advance or if there is opportunity for more earning potential if invested elsewhere.