Essay on Sloane Ltd
Statement of financial position
As at Dec. 31, 2009
Long term Assets
Liabilities and Shareholder’s equity
Salary payable 32,000
Interest payable 900
Long term liabilities
Bank loan 10,000
Loan from Sloane’s wife 80,000
Share capital 20,000
We have to emphasize on the loans and the deposit that they, Sloane and Eanols, each invested in the company.
Debt-equity ratio: 90,000/20,000= 4.5 This high debt-equity ratio means that their company has an aggressive approach to financing their operation growth.
Disclosures: • There are already five contracts each worth $ 6’000 for our Inter Act …show more content…
Conceptual framework • Going concern: they intend to be around for a long time. • Economic entity: they consider the company as a whole and it’s not a personal company • Faithful presentation: after they do the recommendation from above, then it is consider a faithful presentation. • Periodicity: they present their statement annually • Matching: we are expensing all the expense when they occurred. • Revenue recognition: we don’t have revenue recognition this year, but we will recognize revenue next year in March when the