which-of-the-following-is-not-an-element-of-the-financial-statements-a-future-potential-sales-price-

Question

Which of the following is not an element of the financial statements?
A. future potential sales price of inventory
B. assets
C. liabilities
D. equity

Puneet Prajapati · Accepted Answer

Okay, so let&#x27;s understand the current solution, would you? So what does the financial statements include even in this stagnant? So the financial statement, Just a place you come statement toe. So I&#x27;m writing in the appropriate order in which any type of entity will be preparing the financial strippers. Okay. Gash, no statement. Also, there is ah, deng nor school on engine strippers. Okay? Our system is not, you know, very likely to be discussed at this point of time so you can take these three does which will be imported in financial statements. Okay. No, it says the profitability off organization when I see profitability, it means because this is that how much profit or loss the company has invader over the current beat here. Okay, When it comes to challenge it, it gives the statement often engine position, like we&#x27;re go into the Stans as off No, in terms off asserts and liabilities. Okay. It says the gas flow state Brenda says, says the gash floor position make how much How much cash has engine burger and paid off for the various types of activities. Okay. They&#x27;re not three types of activities which we discussed. You don&#x27;t then we will face advanced problems. So as of now, I everything you the are three types of activities under casual statement, like operating activities, investing activities and balancing activities for so the three for three of the activities, we will prepare a cash flow statement. Okay, so Castro separately Georgia all three activities. And we will state that how much gas regenerated from each of the activity and how much cash we have spent on each of the activity and deck. At the end of the balance, people get our cash. Mr. Okay, that is what the cash flow statement. Just us how in the men in Jeet the potion is asked us that each other falling will be included in different interest statements. So the balance sheet specifically includes a sect, liabilities and owner&#x27;s equity. Okay, Okay, so we can say that we have the night dollar choice, but I got a problem. So what is the correct choice? The correct choice is a because in balance sheet, there is only a sex celebrities and ordinary cruddy items which will be considered There is no place for future potential price for sale off. Invent three. Okay, you just sell price Well ready. So the correct choice is a okay. That&#x27;s all forever. Solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current solution to win something. But first of all, before the example, we draw the first of all, understand the actually question behind this solution and works it. What is it? Let&#x27;s see. Sits minus liabilities. Equal. Get it? Actually, capital is used in traditional needs as a loan in relation, sophisticated. But just to quit, you stop already. Our date is Oh, precise differences. They have presides differences between stockholder&#x27;s equity and capital. However, we will understand. Listen later when we will face the problems. Okay, so we have our question said minus liability was to stop really pretty no electricity. Understand this equation, Tau Example. Because the visit will be a little complex at getting states to understand this. No, let&#x27;s see. Mr Green has business off blue business off and currently it has. It&#x27;s it&#x27;s oh, dollars I did and liabilities off. Daughter 200 through there licked Lewis. So what do we have? We have Mr Ri, which is dealing in business off clothing, like chasing the flutes from locally from Lydia are outside of the country importing, you know, a good material. Some outside of the country, local boundaries and selling the setting, the builds and about my beating. In such business, Mr Lee has a community sets off about 500. These events will be in terms off gash. Know what is in a second? That&#x27;s it is in a mountain which a person or an entity is likely to the sea. Our is expecting to receive in some later point in time. So a sex could be gash, which is which is guaranteed with the current, which the entity it&#x27;s currently holding in its bank guard in, you know, cash reserves or doctors. It is that the person who would like you to pay the person for whom subject is that considered as sex. So presently, Now, what are the liabilities? Lab, please. Uh, those are mom&#x27;s, which we have to be. Who? Other person. Like participles. We have predators or shock them. Decked Logan Back short, Longtime necked. These are other financial obligations which B which we have to pay off during the lifetime of the business. I love What? The accounting. A question in place. Let&#x27;s understand this. Also, a sick Linus like beauties equally do stock no water. What is the amount of dissecting never take something. What is the example of liabilities? 100. Now, what is this? Top of very pretty hours. So we have understood the meaning. Love This one, This one? No, we really understand the meaning of this. And after that, we will come to the conclusion that how many type off combinations we can produce with this question, So that will be able to go on. Push. So what is this top of that? It would be It is. It is the amount there, the business man whores in the business as is, huh? Only money was realization depends upon liquidation. Liquidation? Oh, business having bean there done such definition. It is simply the amount that deck mystery that Mr Three Wars in the business as his own darts a simple list. Thank you, Mr V. As a community of equity, wealth equally means on his own. Mr. Ray has a commuter belt off dollars. 300 in his business. After being off the liabilities from the A community, a sense and what it would be the insects. But maybe gash dictators, order receivers or what type of bank deposits he had so out after the bingo after thing off celebrities. Dollars. 200 from the assets. Whatever be the long left? After such activation off of the exits, whatever will be left will be actually beautiful to Mr as a business. And this will be start hold equity. So no. So the correct solution. So the correct choice. So the correct choice off off problem 13 is deep. Howdy. Because, Indy, this is I send less liabilities equal to stock up. It took it. So this is about the Actually, this is the actual question is that&#x27;s it minus liabilities? Because just talk it is. And from this a question. We cannot be right this equation in anything so that this white this option is not today and that this does not represent the actual impression. So the current choice a problem dirtiness. And thanks for the

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the solution with an example. But before the example, you troll, let&#x27;s first draw the basic question. What we have in the question. So doctors sits my list. Library fees, quest. He quit. No, this is this. A question is known as this equation is known as accounting equation, it states that they will be the bill effect off each transaction on the equation. This definition, we will understand in detail whenever we will face the numerical problem later. Toe accounting Question. This is the basic accounting question we have on through this. Different types of combination can be produced, and based on that, our current problem, which is problem for Bean, is based. So let&#x27;s try to understand this in with more with an example. Festival sample Mr. R has business Oh, dealing in instruction Medea. And he has. But you omitted a sex off daughter 1000 and liabilities off 500. So based on the question we have just found, we can deny that our equity will be off $500. Doctors 1000 dollars six minus $500. Liabilities will be quite Do I wondered $500 of equity so based on that weekend did attacked we can bribe. What is the amount of equity that is attributable to Mr R out of his business looked but vehicle actually building with a different problem. The different problem is that how how many nights off combination we can drive from the basically called the question. So I will try to right on the dog. What is the basic accounting equation? And based on that, I will try to drive the possible combinations out of it by replacing the variables left to the right side, right up on a train side of the equation and left inside of liquid so that we can derive our solution. Look detailed analysis. So out of this first possible combination is, then we will transfer liabilities right inside. What you laugh, it could be. And what is this minus sign and this minus and you&#x27;ll become Let&#x27;s sign off liabilities. This is what we can deny from the basic mathematics. Okay, this is the first possible combination. Then the second possible combination will be as X minus equity. So we are getting equity on the left hand side of the equation. So it&#x27;s inherent. Plus sign will become minus sign. So that&#x27;s why I have not done it explicitly but done within the then, then, by drawing the marks that how but how they could design has changed by getting it on the left inside. So So I said, minus equity, it will do liabilities. No liberties will have a plus sign because on the left side, exciting minus sign. But But then I will shift the liabilities to that. Inside, it could become a positive sign. Now, the third combination will be we have done for the assets. We have them for the liabilities. And now it, uh, times for in the first equation the basic question we have. We can also transferred it to here because we have They gonna target variable of asset on the left inside the single variable. Actually, and we have taken laboratory. There&#x27;s a target variable. Now we will take it. Could be as a target video and how we were gonna have already, Cody, just a sec, minus liabilities. So I&#x27;ve got a solution out of it. Is what? Which is the which does not represent the actual combination of the miss equation. So the correct choice for four problem for Dean is See which says it&#x27;s soc is actually not a correct representation off. Probably questions. So that does have a distribution for the current potion. And based on of an example. Legs do this also. So Mr Ri has $1000 off a six. Okay, then $500 off elaborate please. And $500 off. It could be. So First. Understand this one. Let&#x27;s say we have. We are likely to receive $1000 from a customer who we have supplied material the construction material. So we are We have sex off thousands dollars. Did she have to deceive? But we also have toe pay someone. Okay. We also have toe pay someone so that we have liabilities off 500. Okay, so it could be portion that this equally portion. What does it do know ignored that. What is the amount that is attributable to a business person out of his business when all the library tease will be paid off from the essence? If let&#x27;s suppose there is 1000 off these $1000 of business and there&#x27;s $1000 of liberties so they could be component will be zero. Nothing. So the businessman will not be able to draw any tape off. You know, cash drinks from the business for his personal use of that. But for the current solution, our answer will stick to Oh, I see. So tank.

Puneet Prajapati · Answer

Okay, So let&#x27;s understand. What is the meaning off set has given another question right now. So first of what, we will go with the literal definition or we can sit traditional definition which has been given in the books and followed by that. We will give an example to understand more clearly what is the meaning off. So let&#x27;s even understand the current definition with a more elaborated example is it is very thought financial drawbridge because Vivian, because without financial transaction, they will not be any, you know, any type of financial obligations arising out any of the parties. So that is right. There needs to be a financial transaction to create it. Obligation festival. Okay, so first of all, let&#x27;s understand that the basic the basic off, basic definition off said it is an amount which an individual are a company or any type of legal person. So, you know, individual like a human being or any type of sole provider which is dealing in tow, any type of business. Okay, on a company like a legally incorporated company. As for the local regulations off, the idiot or any type of legal person know what does the legal person. Pete. A legal person could be any type off. Oh, a sub sub ordinated off the company like he can have partnership forms. We can have limited liability partnership forms. We can have any type of authority that that will be or that has been created. Patty government. Okay, so that type of legal person like municipality and many of them, please. So assistant authority, which expects to receive from now, expect to receive what I&#x27;m out. So so what In tow? State that. But you can assume like this expects to receive amount from any other person as a desert off financial transaction. Let&#x27;s understand this. It molded into in itself. Because with example, you get a better clarity. More elaborated. Meaning, Lottie Basic traditional definition. So Mr A has sold What? Just that he has. Don&#x27;t few batches off students in dominant off Generally. Thank you. Oh, fee. So, Donna, 15 100 don&#x27;t What? In total means total fees are 1500 for all the students. For all the matches off, all this one&#x27;s in duty. But as of now, hasn&#x27;t r B made otherwise? We stood a on treatment off such ease. No. What? No what we have just studied in our basic on begins it classic definition of a sick or be Esther deed that it is an amount which an individual are accompanying or any type of legal person expects to receive. Okay, you can remove it from here because actually, we have stated it here. More people in the first place so expects to deceive from any other person from any other person as a dessert, all financial transactions. So there are four things more clearly wants to follow this one on this whole world. Then any other person, it maybe anything, Any other person, okay. And 40 minutes desertified. Roderick. And the baby needs to be a financial transaction executed before creation of such obligations. So in the current case, Mr has start some off the swings in the month of January and have heard fees off $1500 for all of the stories in total. So we have to advise that what What type of treatment has to be done by Mr for treating such amount? No. As for the definition, it can be clearly seen that the $1500 will be treated as in a sect. Bye. Mr E. Because off financial transition. Now, what is the meaning of financial transaction? We do not need to get confused in the names suggest they&#x27;re fun. And Children, which manages that means just that it involves supplying a good just obviously, is any type of goods or services underdone for receiving cash for receiving money from another person who is receiving the goods off service is okay. But when we are exchanging off goods or services, this will not involve anything or this will not be included in financial transaction. Okay, my Mr Eight. Because off when Children are virgin? No. Between whom? The financial transaction is being executed. Mr A. Huh? Students, Because students are receiving goods and services and mystery is expecting to receive fees from the students. So that is why it isn&#x27;t a set for Mr So for the current problem. Current problem. 15. We have I got a choice. So we have in the current problem in the current problem. 15. The correct choice is the correct choice. Is the so I problem? 15 by variety. Because it has been there. Dennis, he&#x27;s all right. Their distance e Mr E is expecting will deceive the please. So therefore the correct choices be for the control 50. That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

So let&#x27;s understand deterrence solution. But before that ve vill and mr how looking to pay the balance sheet and what items are comprised in the bed and shoot. Okay. Quarterback leaving. Understand? What is the solution to our Okay? I am using the traditional for more valiant shoot. Okay, who make it more clearer? So generally there are three types of items in the balance sheet. I have written all those broad items which will be classified in the balance sheet. Okay. Based on that, I have used different types of Paris for different three different times. Okay, so first of all, let&#x27;s start with liabilities. Location liabilities are the amounts which a business Anquetil has to pay off their suppliers. Okay, let&#x27;s suppose we have a business off nature. Okay? Now, to make furniture, we need raw material in inform off blocks. OK, so what happens when you when you purchase some good love song, the supplier or some other person? Okay, so what you what you said to him after purchasing or after receiving the clothes that do feel you will pay off the amount of you in a deluded wanting that Let&#x27;s him in one year What? No. What happens? That amount people becomes available after one year. No, that won&#x27;t be considered us liabilities. Okay. And that is generally owners account stupid. So I will be giving example for each off the terms, OK? And you can write it down this example for future reference. Okay, so that Jovan or get confused that how did we arrive? The correct choice at the end of the explanation. Okay. So for a region with so far making understand each of their don&#x27;t be able take example in respect of business that is dealing in furniture, sending off nature. Okay. No, What is the capital? Okay, so this amount, you can understand that. But I have written celebrities vindicated been because we have to pay it in a future. So we can, you know, in front from the liberties that it is a moment that we are not supposed to like it buy because we have because it incurs the expenses like it. It is likely to result in being love some other person from which we have received goods or services. Okay, so that is why African breakfast just I have written deputies with no windows on Capitol. It is the investment off the owner of the business. Like to support Mr A is the owner of business. No, whatever amount or whatever. Let&#x27;s see. And new day above investment, which e which Mr has bean Hezbollah into the business to start the business, okay, will be considered as capital. Okay, let&#x27;s suppose Mr a broad gash as well as his bank balance. Okay, who started the business? Okay, so the capital is the amount of investment which has been brought by owner who start doing business, OK, at the initial level, as well as in the middle of the opening love business. Okay, Now celebrities have bean gratified and capital also. Now let&#x27;s come to a sex. We&#x27;re gonna sex. Let&#x27;s suppose you have sold furniture. Who? Your new customers. Okay. No. What happens? The customers say that you are a new businessman, so I cannot trust you. Initiative. So what? I can offer you that I will pay you the Ammon okay against the furniture I have bought from you in one year&#x27;s time. Okay, So that is what our customers said to us. Know what will happen when we will have any day off amount that that is receivable from our customers. Okay, then such a long beat considered s sex. Okay, so the the referred that amount which is receivable from the accepts. Which is this even from the customers? Yes, a coincidence. E okay. Know what happens? So this is the full explanation. So I&#x27;m writing down the difference. That&#x27;s why we have maybe have a conscience. Evil. And I said site because of furniture sold on ready. Okay. Here also, we have good laws, but chased on credit basis. Lighted basis means the payment will be paired on that payment will be See a few chip on. Do you think now what happens in a suicidal to There is one item margin that is inland. No. What is it? May be in 20. Is there a moment again? Okay, it is. There are material which has no being processed yet to be converted into furniture. Okay, so in when they can include drama Gideon Vorgan progress like it has bean semi furnished. Or we can say it has bean. It is a it is in us semi persist fall like neither finished normative Sammy Sammy possessed okay in Mandarin can also finish Good. Also, which would not be sold to the customer during the current. So that is why we have in 20 on the sex site in the Ballon ship. So we have the right our solution, that on which of the statement leaving list our American dies in 20 account. Okay, so what&#x27;s what is that statement? It is balance sheet. Okay, so the correct choices. Okay, you can write down this example so that you can get a clear idea that How did be it? I beg that. How did we arrive it? This solution, that is choice. Okay, that&#x27;s on foot of a solution. Thank you.

Puneet Prajapati · Answer

Okay, So let us understand the current solution, But before moving to the institution vigilance and understand the concept off religious statements. And how do we teach to the occupation of financial statements? Okay, let&#x27;s suppose we have Ah, business off. Setting radio gives. Okay. Okay. This is over business. OK, so whenever be sell, you begin to customer. Or more specifically, Children. What happens? It consists off to evens be sell video games to the beatings. Okay. The parents of the Children and the parents give us money back against the video gives. So they&#x27;re supposed to be up financial drawn. The chip often. Angel religion is a plan in action. Victor. Ricin Villas exchange off money against the goods and services. Okay. It is very, very well industry. Okay, now what happens in the business? There is a cities of transactions. Let&#x27;s suppose 100. Okay, So what happens? Who to get a clear idea that how many transactions has the the entity has entered with other entities or other persons? Okay, we need to record or those transactions. Okay. After that, we get a detailed summary that war type off transactions happened with veg entities. How much the amounts. How much the amounts of the transaction happened with entity And, like, Vice. Okay, that comes from the posting. So posting provides it. They&#x27;re detail. Somebody off transactions happened with them. Entity. Okay. And an entity or different types of amputees. After posting, we have some organization. Now at this immunization process. What happens? This dictated details. Memorization becomes very brief in this process, and this is done to trial ballots. You can know this diagram on your notebooks also. Okay. No. After moving to brief brief civilization, they Then finally, it comes to the financial statements. There be prepared balance sheet. First of all, we do not prepared Ben, and she&#x27;d be prepared Income statement then moved to balance sheet, then moved to statement of cash flows. Okay. And like rice, So this is the process. Okay. This is also loan as accounting cycle. This process is known as a camping cycle. The process off accounting in any type of organisation. Okay, So we have a business of video games and the process to record the transaction. Italy and off probation, orphanages, statements. A potion has Oz. Says what? Which of the falling is not included in the ban. Interesting. So for the information financial stake names will include First of all, it will include income statement. What is income statement? What is well in sheet? We will discuss Ben. We will face the problems allergic to sit concepts. And then you just take a note off it for the for the current solution. OK, then we prepare the balance sheet, okay? And it last beep. Very cash. Mr. Yes, Mr. Okay, that&#x27;s clear. So the potion disasters. Which of the following is not included in financial stickers? So the correct answer we can die from the from from about explanation we have made so far that make choices The statement off owner investments. Okay, that statement is not included in financial statements, so you can know down. So she&#x27;d one she toe on the in orders for back a revision. However Indian, we have a conclusion uncertain as correct choice says the Okay, that&#x27;s all for another solution. Thank you.

Problem

Which of the following is the correct order of pr…

Problem 12 Hard Difficulty

Which of the following is not an element of the financial statements?
A. future potential sales price of inventory
B. assets
C. liabilities
D. equity

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting