What concepts does trading account, profit&loss account follow?
819437
For a trading account you need to show the results of trading ( ie buying and selling of goods ) in order to ascertain the gross profit  or gross loss of your business.\nNow this means you need to use only those transcations which are directly connected with goods.\n\n\nA profit&loss account is prepared after the trading account and it ascertains the net profit and loss for a particular period .\nThe net profit is the surplous you have in your hands after charging against gross profit all the expenses including depreciation and other provisions attributed to normal activities of a business (general expenses).\n\nDeferred payments when related to sales of goods for filing in the trading account is debited . The person who has to give you money is the debtor.\nAnd it is his liability and your asset , \nItll always be added to the debit column\n\nPrepaid items are your liability as you have to provide the customer with your service and is added to the credit column as its an advance payment.\nLast year's debt that just turned bad is added to debit column in the P&L account.\n\nI hope you this is of help to you.\n\nHave a nice day.\n\n:)
560874
http://www.actuaries.org/LIBRARY/Submissions/financial_assetse.cfm\n\nThis provides a decent description for you.\n\nCheers\nAlister\nhttp://www.marketscience.com.au
724710
Ah, there's oodles of different ideas.  I like the one that narrows it to five basic rules: (1) Does it make a profit?; (2) Does the graph look like the price keeps going up?; (3) Is the news good and getting better?; (4) Is it doing better than its nearest competitors?; (5) Does it look like it is going to keep making a profit?
382151
This is just the process for opening an account and starting to trade stocks.  Learning which stocks to trade can take years, and is way to complicated to try to explain here:\n\nTo open an account, go to a brokerage firm (like Schwab, Etrade, Scottrade; whoever) and get a form to open an account, or you could just download the form from the internet.  \n\nFill out the form, and send it to the brokerage firm (or you can drop it off at the brokerage firm).  \n\nWait for the firm to open an account for you, it won't take long and they'll send you the info when its open or you could call/ drop by their office.  \n\nNow start trading.  You would typically trade by calling the firm and telling them what to buy/ sell, or doing it over the internet.\n\nThis is a very very general explanation, but there are about 100 details you will need to decide for yourself along the way.  ie what kind of account; are you rolling an ira or something into the new account (the brokerage firm will handle this, you just fill out another form); do you want a full service broker (more expensive but gives you more advice on what to buy) discount broker (less expensive, some advice) or deep discount broker (cheap, but you are on your own in terms of what to buy); and many other details.  \n\nOf course the brokerage can help you with most of the details, but they can't teach you how to choose which stocks to buy/ sell (and quite frankly the picks given by the full service brokers may not be any better than throwing darts at a newspaper); this part takes years of trial and error to figure out - so hey, get going.  No time like the present to start.\n\nGood luck.
51282
Accounting tends to be one of those subjects that you either get it or your don't.  The best advice is to keep practicing the t-table exercises until you find that "A-HA!" threshold.\n\nHere are some basics.\n\nIncome Statement\nNet Sales\n - Cost of goods sold\n   (Labor, Materials, Overhead, Delivery, etc.)\n= Gross Margin\n - Selling, General & Administrative expenses\n= Operating Profit\n - Interest\n= Profit before taxes\n\n\n\nBalance Sheet\nAssets\n Cash\n Investments\n A/R\n Inventories\n PP&E\n\nLiabilities\n A/P\n Long-term debt\n Other liabilities\n Reserves\n\nShareholder's equity\n Common stock\n Retained earnings
652874
For every share sold, there is a share bought; \nfor every seller, there is a buyer.\nThe money that you lost might have gone to a short-seller who first sold the stock at $40 and then bought it back at $30, or it might have gone to somebody who bought the stock at $30 and will (in the future) sell the stock at $40. (By the way - the company itself might have been the buyer!)\nBottom line is that the $10 did NOT go INTO your pocket, it came OUT of your pocket!
321673
First research, research, research.\n\nYahoo finance has some excellent tools as well as a glossary of financial terms and stock screeners.\nI would recommend creating a practice portfolio for a few weeks.  List the stocks you are thinking of buying and use a performance view using the current price.  Yahoo will tell you how much money you have lost or gained.  I recommend a diverse portfolio. (don't put all your eggs in one basket)\n\nTry that for about a month and then use one of the online companys like scottrade or etrade for reasonable commissions.\n\nGood luck
994117
Perhaps they mean the ledgers or the account books that you actually use to keep a running total of income and expenditure... If so, you need to describe how and why they are used and include some example pages from account books themselves.... Check with tutor or teacher just to make sure.
545760
It stands for profit & loss.  Think of it as a balance sheet for a business.  They enter their profits as pluses and their outlays (whatever they need for the business, such as rent, electricity, phones, inventory, etc) as minuses.  Then they either show a profit if their number comes up positive or a loss if it comes up negative.
183311
Another way to express the term for portfolio would be "stuff in an account." I.e., if you have an online account, and that account is composed of equities (stocks), bonds, options, etc., that would be your "portfolio." If you work sd a portfolio manager at, say, an investment bank, you will be taking care-managing (buying, selling: trading)-of the various portfolios/accounts that your customers have. It's also possible for you, or anyone else, to have several portfolios: maybe you have a high risk-high return one, one for fixed income (bonds, etc.), and another for, say, IT equities or whatever.
858259
- Profits, both past and predicted\n- dividend\n- sales, past and future\n- debt/capitalisation\n- position with respect to competiition\n- book value\n- some qualitive aspects  like: do I understand what they sell, is the management any good\n\nA quick and dirty method is Gordon's discounted cashflow model and it's improvements.
64315
A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.\n\nThe balance sheet must follow the following formula:\nAssets = Liabilities + Shareholders' Equity \n\nEach of the three segments of the balance sheet will have many accounts within it that document the value of each. Accounts such as cash, inventory and property are on the asset side of the balance sheet, while on the liability side there are accounts such as accounts payable or long-term debt. The exact accounts on a balance sheet will differ by company and by industry, as there is no one set template that accurately accommodates for the differences between different types of businesses.\n\nInvestopedia Says: It's called a balance sheet because the two sides balance out. This makes sense: a company has to pay for all the things it has (assets) by either borrowing money (liabilities) or getting it from shareholders (shareholders' equity). \n\nThe balance sheet is one of the most important pieces of financial information issued by a company. It is a snapshot that shows you what a company owns and owes at that point in time. The income statement, on the other hand, shows how much revenue and profit a company has generated over a period of time. Neither statement is better than the other; rather, the financial statements are built to be used together to present a complete picture of a company's finances.
40470
no, they are not actual items that can be either divided or sold for profit.  As is stated they have no value other then time off in the future!!  Only actual material items and monetary items (savings account, checking account, stocks, bonds, CD's, ect.) can be divided.  Generally those have to be sold and the profit split.
733051
profitability is generally measured by return on assets and return on equity.  However, profitability varies greatly among industry groups.  So to determine how profitable a company with in an industry a comparison of margins needs to be done. \n\nWhether a company's stock is worth buying is not entirely dependent upon a company's profitability.  There are other considerations.  Most importantly the consideration of the company's future prospects.  A very important question to answer is what is the company's earnings expected to be 5 years from now.  Most investors are more concerned with that than other aspects of a company's profitability. Another question to be answered is how consistant is a company's earnings performance.
801294
It all relates to the P/E or the Price to Earnings ratio. It measures how much revenue or profit one share earns and compares that to the price you would pay for that one share on that open market.\n\nWhat you or your banker are talking about can be dangerous because you could be paying a lot of money for a share that does not have a lot or any income behind it at all so you would be in danger of losing your investement. This happened a lot in the dot come bust where sahres worth $500 or more were issued and bought for companies that weren't even making $.01 per share.
1084555
FIFO, LIFO, and Average Cost generally refer to merchandise, especially food inventory. I'm not sure it really applies to stocks.
287915
beginning inventory\n+purchases\n+trade-in (not sure, depends on type of business)\n-purchase returns and allowances\n-purchase discounts\n-ending inventory\n=cost of goods sold