A) Assets + Liabilities = Owner’s equity B) Assets = Liabilities + Owner’s equity C) Assets + Revenue = Owner’s equity D) Assets + Revenue = Liabilities + Expenses 2. Which of the following financial statements shows the changes in capital during a period of time? A) Income statement B) Statement of owner’s equity C) Statement of cash flows D) Balance sheet 3. Which of the following financial statements lists the entity's assets, liabilities, and capital as
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customers to apply on account. The effect of the transaction is a. an increase in an asset and an increase in revenue b. an increase in an asset and a decrease in capital c. an increase in an asset and a decrease in a liability d. an increase in
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Keller Fi 504 Midterm 1. (TCO A, B, C) External users want answers to all of the following questions except: (Points : 3) Is the company earning satisfactory income? Will the company be able to pay its debts as they come due? Did the company use a budget to plan its expenses? How does the company compare in profitability with competitors? | 2. (TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called:
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1. Assets - are things of value owned by the business. 2. Liabilities - are the equities of the creditors, or the debts of the business. 3. Cash - is any medium of exchange that the bank will accept at face value. 4. Accounts Receivable - Money which is owed to a company by a customer for products and services provided on credit. This is often treated as a current asset on a balance sheet. 5. Notes Receivable - A note receivable is a formal promise to receive a specific amount of cash from another
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a customer for goods and services that the customer has ordered. ------------------------------------------------- Accounts payable Accounts payable, also known as Creditors, is money owed by a business to its suppliers and shown on its Balance Sheet as a liability. An accounts payable is recorded in the Account Payable sub-ledger at the time an invoice is vouchered for payment. Vouchered, or vouched, means that an invoice is approved
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Discussion Questions Page-41 1. What is the fundamental accounting equation? Fundamental accounting equation is the relationship between assets and liabilities plus owner’s equity i.e. Assets = Liabilities + Owner’s Equity 2. What are expenses? An expense is an outflow of cash, use of other assets, or the incurring of a liability. Expenses cause a decrease in owner’s equity. 3. What is revenue? Revenue is the inflow of money or other assets that results from the sales of goods
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Contents Chapter 1 Introduction & Methodology ................................................................. 1 1.1 Introduction..................................................................................................... 1 1.1.1 Square Textiles Ltd. at a glance................................................................. 1 1.2 Objective of the study ...................................................................................... 11.3 Methodology .....................
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that budget, and it would give correct signals to investors. Problem 19-6 19-6 a. Balance Sheet Alternative 1 Total current liabilities $150,000 Long-term debt -- Common stock, par $1 162,500 Paid-in capital 437,500 Retained earnings 50,000 Total assets $800,000 Total claims $800,000
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is a report on financials that summarize company’s assets, what the company owns, the liabilities of the company, what the company owes. Most Company’s still use balance sheet in the daily running of organization because it enables managers in knowing whether balance sheet balances out on both sides. This makes sense since the company must pay all things it uses such as the assets by borrowing money (liabilities) or getting the money from the shareholders that are the shareholders’ equity. Application
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capital. this information can be clarified through certain statements : a. Annual income : started from 100,000$ and greater than 500,000$. b. Total assets : started from 1000,000$ and greater than 10,000,000$. c. Total liabilities . d. Net worth : started from 1000,000$ and greater than 10,000,000$. e. Total non-borrowed funds available : started from 1000,000$ and greater than 10,000,000$. 4. other required
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