Month: February 2023

The recognition of income taxes in the balance sheet is done after the calculation of tax expenses. Income taxes payable appears in the current liabilities section of the companys balance sheet. John Mathay while introducing the Finance Bill reduced income tax from 5 annas per rupee to 4 annas. While accounts payable may seem similar […]

However it is also necessary to present additional information about changes in other equity accounts. Statement of stockholders equity is a statement showing the movement of all components of the equity. Statement of Stockholders Equity The statement of stockholders equity is a financial statement that summarizes all of the changes that occurred in the stockholders […]

Simply laid out this is the format needed to develop a contribution margin income statement. In a contribution margin income statement a companys variable expenses are deducted from sales to arrive at a contribution margin. Prepare an income statement in the contribution margin format. Calculate the firms operating income or loss if the volume changed […]