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Caso di studio - Contanti e profitto

  • Note di Apprendimento
  • Revisione degli argomenti
    BabaJide Martins F.
    TR
    BabaJide Martins F.

    Noted.

    Alice B.
    GQ
    Alice B.

    Cash and profit seem alike but are different the money received after all sales without paying taxes and other expenses is cash meanwhile money left at hand after paying taxes and other costs is profit.

    Hermina S.
    LC
    Hermina S.

    Informative!

    Morne V.
    ZA
    Morne V.

    The increase in the bank balance and net profit is different. Some items only affect cash, others only affect profit whilst some affect both at different amounts. State these items for Cash versus profit

    Sunday O.
    NG
    Sunday O.

    Case study - Cash versus profit

    Odongo M.
    UG
    Odongo M.

    Accounting -> Case study - Cash versus profit Case study - Cash versus profit Stan Jones from Stan's CDs, DVDs Videos etc Pty Ltd is a friend seeking some accounting advice. He is unable to distinguish between cash and profit. Having recorded a significant profit for the period Stan is of the opinion that he is entitled to buy a new four-wheel drive vehicle. In fact he does buy the vehicle and has incurred the wrath of his bank manager. He asks you to explain why the bank manager is unhappy. You ask for the financial details of your friend. The reporting period runs from 1 January to 30 June. At 1 January opening balances appeared as follows: General journal 1 Jan. Bank 6 500 Debtors 5 400 Prepaid rent 2 000 Vehicles 30 000 Accumulated depreciation of vehicles 15 000 Creditors 6 000 Loan 10 000 Capital 12 900 Opening balances Between January and June the following events occur: Stan tells you that he has contributed: cash of $10 000 a fax machine valued at $800 (no depreciation this period) depreciation on the new vehicle is 12% per annum on cost. The vehicle is to be depreciated for the full reporting period there is $500 owing on wages Required Prepare the following reports: Cash flow statement Profit and Loss statement (expenses not required to be classified) Balance sheet Answer the following questions The increase in the bank balance and net profit is different. Some items only affect cash, others only affect profit whilst some affect both at different amounts. State these items in the table below. Cash Profit Affect both at differrent amounts Further question What alternative actions did Stan have to buying the vehicle in this period? View the word document for solution to Case study - cash versus profit Further question What alternative actions did Stan have to buying the vehicle in this period? postpone the purchase of the vehicle acquire the vehicle by leasing rather than buying pay a deposit and buy on credit buy a cheaper vehicle

    Manish K.
    NP
    Manish K.

    Information is illustrative.

    Davidson Ade O.
    NG
    Davidson Ade O.

    done

    Penelope M.
    US
    Penelope M.

    I see why it is important to consult the accountant before making an executive decision like that, because they don't always know whats on the books, and I feel like why make a heavy decision on your own w/o consulting, you may as well not have an accountant.

    Adil N.
    MA
    Adil N.

    In a case study - What is cash versus profit?

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