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factory price/cost of production at market value *closing inventory at transfer price
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What is the the meaning of unrealised loss or unrealised profit in accounting terms?
UNREALIZED INCOME (paper profit) is profit which has been made but not yet realized or collected through a transaction, such as a stock which has risen in value but is still being held. also called unrealized gain or unrealized profit or paper gain or book profit. UNREALIZED LOSS is a term that commonly refers to the write-down of an investment portfolio resulting from applying the lower of cost or market value on an aggregate basis. On a short-term portfolio, the unrealized loss is shown on the income statement. On a long-term portfolio, the unrealized loss is presented as a separate item in the stockholder's equity section of the balance sheet. Capzper
What is unrelaized profit?
Unrealized profit is that portion of profit which is not yet earned. In transfer pricing normally what happens that products after finishing transfers to other departments with profit charged but if those goods not sell to end user until that time that profit cannot be counted as profit which is called unrealized profit.
Why unrealized profit deducted from finished goods?
Unrealized profit is deducted because it is received but not yet earned means goods are not sold to outside customers and unless goods sold to end user or outside company customers, profit is not actually earned.
What is the difference between profit making accounting and not for profit making accounting?
The difference between profit making accounting and not for profit making accounting is, that question should answer itself! 8^0
What are some ways in which accounting for health care organizations especially not-for-profit ones tends to differ from accounting in other industries?
accounting for healthcare organizations in not-for-profit ,tend to differ from accounting in other industries.
What is the the meaning of unrealised loss or unrealised profit in accounting terms?
UNREALIZED INCOME (paper profit) is profit which has been made but not yet realized or collected through a transaction, such as a stock which has risen in value but is still being held. also called unrealized gain or unrealized profit or paper gain or book profit. UNREALIZED LOSS is a term that commonly refers to the write-down of an investment portfolio resulting from applying the lower of cost or market value on an aggregate basis. On a short-term portfolio, the unrealized loss is shown on the income statement. On a long-term portfolio, the unrealized loss is presented as a separate item in the stockholder's equity section of the balance sheet. Capzper
Why is unrealized gross profit considered a liability in the balance sheet?
Basically, unrealized gross profit is not an asset, liability, expense, revenue and owner equity. Because asset always record in DR side as a nature. Liability record on CR side but we don't have to pay any thing in unrealized gross profit. expense nature is DR revenue nature is CR but unrealized gross profit is expected to be an income after realizing. owner equity means to invest in business and unrealized gross profit is not an investment. So, we have to assume the unrealized gross profit as liability because it is mutually unearned. Unearned, it is an advance amount which is liability until we earned it. Similarly, unrealized is expected to be earned in future after collecting the installments of sales, as unearned is a part of liability so, unrealized gross profit is also a part of liability through unearned account.
What is unrelaized profit?
Unrealized profit is that portion of profit which is not yet earned. In transfer pricing normally what happens that products after finishing transfers to other departments with profit charged but if those goods not sell to end user until that time that profit cannot be counted as profit which is called unrealized profit.
Why unrealized profit deducted from finished goods?
Unrealized profit is deducted because it is received but not yet earned means goods are not sold to outside customers and unless goods sold to end user or outside company customers, profit is not actually earned.
What is the difference between profit making accounting and not for profit making accounting?
The difference between profit making accounting and not for profit making accounting is, that question should answer itself! 8^0
Is economic profit always less than accounting profit?
No economic profit is not always less than accounting profit; However, if accounting profit is less than economic profit the business would exit the industry.
If total unrealized gross profit of 2 years is given and their rate of gross profit is given then how can you recognize individual unrealized gross profit of each year?
You cannot. You can build/compose the total GP from annual sales but you cannot decompose it if the individual annual information that make up the annual GP is lost.
Is economic profit equal to accounting profit?
no
What are some ways in which accounting for health care organizations especially not-for-profit ones tends to differ from accounting in other industries?
accounting for healthcare organizations in not-for-profit ,tend to differ from accounting in other industries.
What is the advantage of accounting profit?
utfyvkjkhyuboy
Is tax is added in accounting profit or not?
1. Tax is a deductable item from accounting profit as tax is calculated on profit before tax amount to reach at profit after tax account which is also the net profit available for distribution to share holders of company.
What is the difference between cash accounting profit and loss and accrual accounting profit and loss?
Cash accounting and accrual accounting are two methods of accounting in cash accounting system all expenses and revenues are recorded when actual cash is paid or received while in accrual profit and loss statement, revenues and expenses are recorded when they are actually occurred and timing of receipt and payment of cash is not important.
