Accounting Essay Sample on Form 10-K

Introduction

Expense account can result in the accrual and deferrals when the expenses accumulate on a daily basis and others end up being unpaid and thus especially salaries at the end of the accounting period. These accruals are often considered as the liabilities or expenses. In the following accounting period, the adjusting entry is revised to simplify the accounting.

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Insecurity exchange commission some accounts are often reported to operate. Depreciation account which is the apportioned share of the cost of a company's fixed assets that is appropriate for the accounting period indicated on the company's income statement. It is summed back to the net income since it was not a noncash transaction. The latest new straight line in Japan security and exchanges depreciate assets that were put into service on or after April 1, 2007.

Depreciation expense can be defined as the income statement which comprises a portion of the cost of plant and equipment that is being corresponded to the time interval shown in the heading of the income statement. There is no depreciation expense for land. Amortization expense can be described as the allocation to the payment of the value of an that is intangible asset such as a patent or goodwill where their values are written off, and they are being recorded in the income statement account. Japan market facilitates the trading of financial securities in Japan. (Authorized by the Financial Instruments and Exchange Act of 2008, Retrieved 4 May 2016).

Accumulated depreciation is the number of costs the asset has been allocated in the income statement. In this case, the fixed assets are exploited when they are purchased and reported on the balance sheet this means that no cost is initially recorded after the date of buying this was established in the Financial Administration Policy for the Administrative Year 2015 by the Securities and Exchange Surveillance Commission.

Accumulated amortization is described as the aggregate amount of the total cost of a noticeable capital asset that has been indicted to tasks expense. Its value in balance sheet can be reduced by debiting amortization account and crediting accumulated amortization account. Its financial statement was reported in a registration statement filed under the U.S. securities act of 1933. (Public Company Accounting and Finance by Steven Bragg).

Income tax is the annual taxes collected by the centralized government and most state governments on individual and business income organizations. It is applied to both income earners like wages and salaries and also to the unearned incomes which include the dividends and the rent. In most countries set a tax in such a way that those who are high earners pay a tremendous amount of tax and those who earn less pay little amount so the wealth can be evenly distributed. This reduces the amount received by the individual intends to keep.

Income tax income can be referred to as the amount of overhead that a business identifies in an accounting period for the administration tax related to its payable. It is not likely to meet the standards of the income tax percentage which can be applied in the business income; this is because there are some differences between the reportable amount of revenue under contexts and the reportable amount of income certified under the applicable government tax code. (Comparative Income Taxation Hugh J. Ault, Brian J. Arnold-2010)

In the calculation of the income tax, the gross profit is the difference between the cost to make a product and the selling price or revenue (P=C-R)

Mark up percentage is calculated as the profit divided by the cost to make the product (M = P / C = ( R - C ). The gross margin percentage is the profit divided by the selling price or revenue (G = P / R = ( R - C ) / R).

Conclusion

In conclusion, 10-K is mostly used in the yearly report, as often as not, is used as a mechanism by management to emphasize the positives while minimizing the potentially bad stuff this improves the performance of the business. It puts the information in a consistent format that helps the individual to compare one year against the other. It compromises a detailed depiction of a Company's business, the threats it faces, and the operative and commercial results for the financial period.

References

Daily, J. E., Kieff, F. S., & Wilmarth JR. (2014). Introduction. In Perspectives on Financing Innovation. Routledge.

Louis, H., Robinson, D., & Sun, A. (2015). Perceived audit quality and firm value: Evidence from investors' reaction to the first disclosure of limiting liability agreements between auditors and their publicly traded clients.