cash flow statement, balance sheet, retained earnings, and income statement. The information contained in the reports provides a detailed picture to the condition of any business. A business evaluation containing all four documents is essential to form an accurate forecast in past and future objectives. Each document allows creditors, investors, and managers’ ability to further understand the financial workings of an individual company. Balance Sheet A balance sheet shows the dollar value
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credit Dividends Payable $900. 2. debit Cash Dividends $1,200 and credit Cash $1,200. 3. debit Cash Dividends $1,200 and credit Dividends Payable $1,200. 4. debit Cash Dividends $900 and credit Cash $900. Treasury stock is reported in the balance sheet as a deduction from: 1. capital stock. 2. paid-in capital and retained earnings. 3. additional paid-in capital. 4. retained earnings. Watkins, Inc. paid $48,000 to buy back 9,000 shares of its $1 par value common stock. This stock was sold
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Financial Statement Differentiation Sha'ron Burton ACC/561 April 3, 2012 Greg MacNaughton Financial Statement Differentiation When putting together a balance sheet, retained earnings, income statement, and cash flow statement one has just created a financial statement. These four documents together give everyone involved in a business an accurate and solid outlook on the business. This statement gives creditors, investors, and management a good look at what they are getting in to
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a daily basis. “They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity” (Beginner’s, 2007). Each one of these statements has it own unique way of showing where the company’s money came from, where went, and where it is now. This is why it is important to have better understanding how each statement can help keep accurate financial records for the business. Balance Sheet A balance sheet is really an easy concept to understand
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Finance in the healthcare industry can be a very tricky subject. The primary role of finance in the health services is to plan for, obtain, and make use of resources to increase the productivity and value of the business (Nowicki 2007). Finance is a very important part of the health care industry. It keeps everything on track and in order so that things operate successfully. Without the right person(s) helping to operate the place of business the company can be in a great deal of trouble. When
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Answer the following questions based on the report of LTT Aquaculture SdnBhd.. 1. Describe the nature of the business of LTT Aquaculture SdnBhd.. Answer: The nature of business for LTT Aquaculture SdnBhd is rearing fresh water fish. 2. Identify 6 resources of the business considered as assets from an accounting point of view. Explain why these resources are considered as assets of the business. Answer: a) Empurau fish (1.5kg and above) - This is considered as current asset as they are selling
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com/ACC-557-WK-4-Chapter-4-Quiz-All-Possible-Questions-ACC5576.htm ACC 557 WK 4 Chapter 4 Quiz - All Possible Questions TRUE-FALSE STATEMENTS 1. A worksheet is a mandatory form that must be prepared along with an income statement and balance sheet. 2. If a worksheet is used, financial statements can be prepared before adjusting entries are journalized. 3. If total credits in the income statement columns of a worksheet exceed total debits, the enterprise has
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Increase liabilities and increase paid-in capital. D. Have no effect on total assets. A journal entry recording an accrual: Answer A. Results in a better matching of revenues and expenses. B. Will involve a debit or credit to cash. C. Will affect balance sheet accounts only. D. Will most likely include a debit to a liability account. Which of the following is not a transaction to be recorded in the accounting records of an entity? Answer A. Investment of cash by the owners. B. Sale of
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use to both managers and employees as an internal component. It is also to describe the external use to investors and creditors. The four monetary financial statements are the balance sheet, income statement, capital statement as well as the statement of cash flows. A balance sheet shows what a business has. A balance sheet is a statement of business or institution that lists the assets, debts, and owner’s investment as of a specified date in time. An income statement is a summary of a management's
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............................................... 3 The Balance Sheet .............................................................................................................. 5 Double Entry Bookkeeping............................................................................................... 6 Ledger Accounts................................................................................................................ 6 Trial Balance .....................................................
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