What do parentheses on accounting sheet mean?

Question

What do parentheses on accounting sheet mean?

Answer 1

An amount in parentheses could indicate a negative amount, such as a negative balance in your check register.



Sometimes an amount in parentheses signifies a credit balance in an account normally having a debit balance, or even a debit balance in an account that normally has a credit balance.



Some accountants use the parentheses to simply indicate credit entries. Amounts without parentheses are debit entries.



In standard costing, the variances that are unfavorable are often shown in parentheses. Favorable variances are presented as amounts without parentheses.



In comparisons of actual expenses to budgeted expenses, the amount overspent is often shown in parentheses. Amounts that are underspent appear without parentheses. Similar to variances in standard costing, the parentheses represents unfavorable amounts.



Sometimes parentheses are used to indicate that the amount is to be subtracted.



The bottom line of a comparative income statement (an income statement that reports several years) might read Net Income (Loss). In this case an amount in parentheses indicates a net loss—meaning that expenses exceeded revenues. The amounts on this line that are not in parentheses indicate a positive net income—meaning that revenues exceeded expenses.

Answer 2

Parentheses Meaning

Answer 3

Parentheses around numbers could have a variety of meanings. Here are a few that come to mind.

An amount in parentheses could indicate a negative amount, such as a negative balance in your check register.

Sometimes an amount in parentheses signifies a credit balance in an account normally having a debit balance, or even a debit balance in an account that normally has a credit balance.

Some accountants use the parentheses to simply indicate credit entries. Amounts without parentheses are debit entries.

In standard costing, the variances that are unfavorable are often shown in parentheses. Favorable variances are presented as amounts without parentheses.

In comparisons of actual expenses to budgeted expenses, the amount overspent is often shown in parentheses. Amounts that are underspent appear without parentheses. Similar to variances in standard costing, the parentheses represents unfavorable amounts.

Sometimes parentheses are used to indicate that the amount is to be subtracted.

The bottom line of a comparative income statement (an income statement that reports several years) might read Net Income (Loss). In this case an amount in parentheses indicates a net loss—meaning that expenses exceeded revenues. The amounts on this line that are not in parentheses indicate a positive net income—meaning that revenues exceeded expenses.

Answer 4

Accounting What The Numbers Mean

Answer 5

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No. If it is on the bottom of your income statement, it most likely be a loss. However in cash flow analysis, positive numbers mean incoming cash. Negative numbers merely mean out flow. It does not mean loss. Remember Income statement is not the same as cash flow statement. Cash flow statement merely account the flow of cash coming in or out of the company in a given period of time. Have nothing to do with profit or loss even though they are related. For example, if you spend $500,000 cash on a piece of equipment and your net cash flow is ($200,000), you could be making a lot of profit in that period because even if you spent half a mil in the equipment, your real expenditure is not $500,000 for that period. Instead only a portion of that is being depreciated as expense. In this example, it says that you used up (not spent) $200,000 more of the company's cash than what you have collected within that period. It affects your liquidity and your ability to pay bills. So on your balance sheet your cash position will decrease but your fixed asset (because of the machine purchase) will increase.

Answer 6

Generally means a negative number