Describe the meanings of debt, liabilities and shareholder
Debt – an amount which has to be paid to another party
Liabilities – the amount of many or the value of something wich a person or organization owes to someone else for insurance matters liability means the responsibility to pay the cocts of an accident
Shareholder- A shareholder or stockholder is an individual or institution (including a corporation) that legally owns a share of stock in a public or private corporation. Shareholders are the owners of a limited company. They buy shares which represent part ownership of a company.
6.Tell about Chartered Accountant.
Describe the structure of the Statement of Financial Position.
Financial statements are a useful tool in analyzing your company’s financial position and performance. They are comprised of four main components, of which the balance sheet and the income statement are essential. The first item to consider when looking at a set of financial statements is whether these are external financial statements or internal financial statements.
External financial statements are issued for external reporting purposes. They are for investors, tax authorities or other significant partners who require financial information.
Internal financial statements are more flexible than external financial statements and have a higher analytical component. They may report by division, have more detail or be produced on a more frequent basis (weekly, monthly or quarterly).
The basic output of the financial accounting process is presented in the following interrelated general purpose financial statements:
1. A balance sheet (or statement of financial position) summarizes the financial position of an accounting entity at a particular point in time.
2. An income statement (or profit and loss statement) summarizes the results of operations for a given period of time.
3. A statement of retained earnings shows the increases and decreases in earnings retained by the company over a given period of time.
4. A statement of cash flows summarizes an enterprise’s operating, financing, and investing activities over a given period of time.
8. Describe the structure of Statement of Earning.
The statement of earnings is a measure of the assets of your operation that have been generated through profitable activity, retained in your business and not paid out to shareholders as dividends. Generally, a large amount of retained earnings is regarded as a sign that the company has done well and is reinvesting its profits in itself. That said, a startup or early-stage business often faces reporting negative retained earnings as it takes time to build a business and become profitable.
Describe some types of tax: income, property, value added, corporate.
Тax the income of individuals and business entities, including corporations. Generally the tax is imposed on net profits from business, net gains, and other income. Computation of income subject to tax may be determined under accounting principles
A property tax is an ad valorem tax levy on the value of property that the owner of the property is required to pay to a government in which the property is situated. There are three general varieties of property: land, improvements to land personal property Property taxes are usually charged on a recurrent basis (e.g., yearly).
A value added tax (VAT), applies the equivalent of a sales tax to every operation that creates value.
Corporate tax refers to income, capital, net worth, or other taxes imposed on corporations. Rates of tax and the taxable base for corporations may differ from those for individuals or other taxable persons.