Search over 10,000 free study notes

Intuitively, the £390 prepaid balance at the beginning of the year should go to this year's income statement in full (it was paid last year but relates to this year; "prepaid"). In addition, we ...

Depreciation is not a movement of cash so therefore does not provide funds for a replacement of a fixed assest. Depreciation is a book keeping entry, debiting the income statement (P+L) and crediting prov...

Year 1£10,000 * 15% = £1,500 (Depreciation for year 1)£10,000 - £1,500 = £8,500 (Net present value at the end of year 1)
Year 2£8,500 * 15% = £1,275 (D...

Accruals concept. The accruals concept is a concept used in the preparation of accounts. The accruals concept states that revenue (sales) should be recorded when the revenue is earned, not when the cash i...

answer structure: definition, explanationdefinition: I/S tells you what happened throughout the year, B/S is a snapshot of financial position of a firm at a specific dateexplanation: bottom line on I/S (n...