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What is adverse variance?
A non favourable variance Eg: adverse revenue means the company earned less revenue than expected.
In math what are the greater or less than symbols?
< means less than > means greater than
What are adverse variances?
Adverse variances means unfavourable variance which is actual expenses are more than budgted variance.
What does the greater sign mean with a line under it?
It means greater than or equal to
Cash Reiepts from customers are greater than sales revenues when what happens?
That means that there were larger purchases on credit for that period, there would be a corresponding increase in assets or expenses. Or, it could mean that oustanding payables from the previous period were not paid and are now overdue. It also means that the company has increased cash flow requirements for the following period.
What is the matching concept in financial accounting?
The Matching Concept: A significant relationship exists between revenue and expenses. Expenses are incurred for the for the purpose of producing revenue. In measuring net income for a period, revenue should be offset by all the expenses incurred in producing that revenue. This concept of offsetting expenses against revenue on the basis of "causes and effect" is called the Matching Concept. The term 'matching' means appropriate association of related revenues and expenses. In matching expenses against revenue the question when the payment was made or received is 'irrelevant'. For example if a salesman is paid commission in January, 2001, for sale made by him in December, 2000. According to this concept commission expense should be offset against sales of December 2000 because this expense is incurred for producing revenue in December 2000. On account of this concept, adjustments are made for all outstanding expenses, accrued revenues, prepaid expenses and unearned revenues, etc, while preparing the final accounts at the end of the accounting period.
Why is your Net Income on bottom line Profit and Loss statement is negative?
Net income is negative which means that either company has earn less revenue or have incurred more expenses then revenue earned.
What is the answer of this meaning revenue exceeds cost and expenses?
Simply means incoming funds are less than outgoing funds which indicates losses for people or businesses involved.
What is the meaning of the term revenue?
Revenue means the income generated from sale of goods or services, or any other use of capital or assets, associated with the main operations of an organization before any costs or expenses are deducted. Revenue is shown usually as the top item in an income (profit and loss) statement from which all charges, costs, and expenses are subtracted to arrive at net income. Also called sales, or (in the UK) turnover.
What is difference between purchases and expenses?
Expenses means money spent or cost incurred in an entity,s effort to generate revenue. it represent cost of doing business. Purchase means cost of buying goods/ services.It result in increase in expense. Thus expense is a wider term which includes purchase in it.
Difference between profit and revenue?
Revenue is the income that a business receives, total revenue would be formulated by price times quantity However business occurs expenses along with the sales, therefore to calculate the net effect of the income that business receives, we use profit which is essentially the revenue minus expenses/costs incurred
Explain quarterly forecasting updating revenue and expense models?
Quarterly forecasting is basically an analysis of revenue and expenses to be earned or incurred in future. Revenues are best estimated with respect to product / service demand in the market. If an expert says that revenue will boom, that means profit will increase... so appropriately expenses will be more related to income...... this concept should alwaz be kept in mind in forecasting..... And also past % is to be seen and and those percents should be a point of forecasting also........ Thanks.
What is break even point in cost accounting?
Breakeven point is that point at which company at no profit no loss point that means that much revenue is required to earn to completely recover all the expenses incurred.
Can you used offsetted?
The word "offsetted" is not considered standard English. The correct form is "offset." Offset means to counterbalance or compensate for something, such as expenses with revenue.
What means the refusal to buy a companys products?
boycottA protest or boycottboycott
Which of these terms means the refusal to buy a companys product?
boycott
What does fixed expenses mean?
the word fixed expenses means to rent
