luck! 1. | The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the | balance sheet income statement statement of cash flows | 2. | The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the | balance sheet income statement statement of cash flows | 3. | Under the accrual basis of accounting, revenues are reported
Words: 591 - Pages: 3
higher in 2011- Which could highlight a potential problem with the efficiency/profitability of the business- The Net profit is down by 15% year on year. Overall the costs have gone up by 1.63% but profit is only up by 0.87% BALANCE SHEET 2 (a) A summary of assets, liabilities and value- What the company own and what it owes? Assets- Cash, equipment, buildings, furniture + money due. Liabilities- Debt, accounts payable, taxes, loans (payroll) Your net figure- A- L=
Words: 1319 - Pages: 6
TEST BANK CHAPTER 1 Intercorporate Investments: An Overview MULTIPLE CHOICE Use the following information on a company’s investments in equity securities to answer questions 1- 4 below. The company’s accounting year ends December 31. | |Date of acquisition|Cost |Fair value |Date sold |Selling price | |Investment | | |12/31/10 | |
Words: 8706 - Pages: 35
amount of net income listed on the income statement is also found on the cash flow statement under the operating activities section. • Balance Sheet The Balance sheet has two main purposes. First, it presents a snapshot at a point in time. Second, it helps to improve understanding, as companies group similar assets and similar liabilities together. The balance sheet reports assets and claims to assets at a specific point in time. It includes the elements of the accounting equation: assets equal liabilities
Words: 2655 - Pages: 11
financing, investing, and operating activities of a business, include the balance sheet statement, the income statement, retained earnings, and statement of cash flows (Kimmel, Weygandt, & Kieso, 2009). The following will delineate the purpose of four financial statements, and which financial statement is beneficial to the two main types of users. Balance Sheet The purpose of the balance
Words: 760 - Pages: 4
Assignment I - Journal Q.1 Journalize the following relating to April 2009: Particulars 1. R. started business with 2. He purchased furniture for 3. Paid salary to his clerk 4. Paid rent 5. Received interest Solution: Date 1 Cash A/c Dr To Capital A/c 2 Furniture A/c Dr To Cash A/c 3 Salary A/c Dr To Cash A/c 4 Rent A/c Dr To Cash A/c 5 Cash A/c Dr To Interest A/c Particulars Ledger Folio Debit Amount (Rs) 100,000 Credit Amount (Rs) Rs. 1,00,000 20,000 1,000 5,000 2,000 100,000 20,000 20,000 1
Words: 9945 - Pages: 40
prices up by 6%, and an appraised just told us we could easily resell the land for $115,000. Yet our balance sheet still shows it at $100,000. It should be valued at $115,000. That’s what it’s worth. Or, at a minimum, at $106,000.” Respond to this statement with specific reference to the accounting principles applicable in this situation. The concept of historical cost determines the balance sheet valuation of land. The realization concept requires that a transaction has occurred for the profit
Words: 3563 - Pages: 15
asked her to submit a personal balance sheet as of June 30, 2010, in support of an application for a $3,000 home improvement loan. She comes to you for help in preparing the balance sheet. So far, she has made the following list of her assets and liabilities as of June 30, 2013: Cash on hand $ 70 Balance In checking account 180 Balance in money market deposit account with Southwest Savings 650 Bills outstanding: Telephone $ 20 Electricity 70 Charge account balance 190 Visa 180 MasterCard 220
Words: 529 - Pages: 3
questions: What does the income statement tell you about the company? Why is this statement important? What business decisions could be made using the income statement? What does the balance sheet tell you about the company? Why is the balance sheet important? What business decisions could be made using the balance sheet? What does the statement of cash flows tell you about the company? What business decisions could be made using the statement of cash flows? What information is provided in the statements
Words: 1423 - Pages: 6
into the company or withdrawing more money. The information on in this statement is calculated and used on a balance sheet. This statement is very helpful to show where money was brought in and where it was taken out. This statement leads us to a Balance Sheet. A Balance sheet shows the different kinds of assets, liabilities and equities it also shows the amount of each. The balance sheet also shows how much cash flow a company has at the time of the report. Last but not least you have a Statement
Words: 259 - Pages: 2
