Question

What are the items shown only in financial accounting?

Answer 1

Answer:

Items Shown Only in Financial Accounts: There are a number of items which are included in financial accounts but find no place in cost accounts. These may be items of expenditure or appropriation of profit or items of income.

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Answer 2

The items that are shown only in financial accounting are items of expenditure, or items of income. Items of expenditure reduces the levels of profit, while items of income shows the reverse.

Examples of Items shown in Financial Accounting

1. Pure financial Charges such as loss on investment ventures.
2. Penalties and fines due by the Company.
3. Appropriation of Profits such as charitable donations or tax paid on income.
4. Pure financial incomes such as profit earned over sale of deeds or rent which is receivable.
5. Discount or any Commission received.

These items are intentionally produced in financial accounts, and find no mention in cost accounts.