= 1= 2Complete each equation by selecting the missing term.Then, select the financial statement that the equation illustrates.(a) Assets = Liabilities + Capital Stock + ?Statement(c)?= 3Statement(b) Retained Earnings (beginning balance) + Net Income - Dividends = ?StatementContinue= 4Expenses Net Income= 6X789

The Financial statements are the statements in written that are to be provided to the firm's…

Answered: Complete each equation by selecting the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. How often should income statements be prepared? 2. Which is more important a. Statement of financial position (balance sheet) or b. Statement of results of operation (income statement)? 3. Explain the following: a. Balance sheet for a specific date (for example, December 31, 20X1) b. Income statement is for a period of time (for example: For the Year Ended December 31, 20X1) 4. What are the advantages of multistep income statement over a single-step income statement? 5. Relate accounts in the income statement with those in the balance sheet. Discuss how the income statement accounts affect balance sheet accounts.
Owner's equity Select one: a. The resulting amount when total liabilities are subtracted from total assets b. When total liabilities are added to total assets c. None of Them d. The resulting amount when total revenue are subtracted from total cost of sales
For each transaction, indicate whether each account would be classified in the balance sheet as (a) an asset, (b) a liability, or (c) stockholders’ equity; in the income statement as (d) a revenue or (e) an expense; or in the statement of stockholders’ equity as (f) a dividend. Account Classifications Accounts Related Transactions 1. ____________ Utilities payable Amounts owed for utilities. 2. ____________ Cash Cash available for use. 3. ____________ Salaries expense Cost of salaries. 4. ____________ Common stock Shares of ownership sold to investors. 5. ____________ Service revenue Sale of services to customers.
The financial statement that reports revenues and expenses is called thea. income statement.b. statement of retained earnings.c. statement of cash flows.d. balance sheet.
For each transaction, indicate whether each account would be classified in the balance sheet as (a) an asset, (b) a liability, or (c) stockholders’ equity; in the income statement as (d) a revenue or (e) an expense; or in the statement of stockholders’ equity as (f) a dividend. Account Classifications Accounts Related Transactions 1. _________ Rent expense Cost of rent. 2. __________ Interest revenue Interest earned on savings account. 3. __________ Dividends Cash payments to stockholders. 4. __________ Land Land used for operations. 5. ___________ Accounts payable Amounts owed to suppliers.
Identify how each of the following transactions affects the company's financial statements. For the balance sheet, Identify how each transaction affects total assets, total llabilities, and equity. For the Income statement, Identify how each transaction affects profit. If there is an Increase, select a *+" In the column or columns. If there is a decrease, select a "-" In the column or columns. If there is both an Increase and a decrease, select a *+/-" In the column or columns. The Iline for the first transaction Is completed as an example. Income Statement Balance Sheet Total Total Transaction Equity Profit Assets Liabilities 1 Owner invests cash 2 Seli services for cash 3 Acquire services on credit 4 Pay wages with cash 5 Owner withdraws cash 6 Borrow cash with note payable 7 Sell services on credit 8 Buy office equipment for cash 9 Collect receivable from (7) 10 Buy asset with note payable
What item flows from the income statement to the statement of retained earnings?a. Cashb. Dividendsc. Net incomed. Inventory
The retained earnings statement should be prepared a.after the income statement and before the balance sheet b.after the income statement and balance sheet c.before the income statement and after the balance sheet d.before the income statement and balance sheet
For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change was reflected as a component of net income, or directly within the stockholders' equity portion of the balance sheet. Remember that the change in total assets must agree with the change in total equity. How would I complete the table?
Use the expanded accounting equation to compute the missing financial statement amounts (a) and (b).
The retained earnings statement should be prepared a. before the income statement and balance sheet b. after the income statement and before the balance sheet C. before the income statement and after the balance sheet d. after the income statement and balance sheet
Which of the following is the correct formula for calculating rate of return on total assets? A. (Net income minus− Interest expense) / Average total asset B. Total equity / Total assets C. (Net income + Interest expense) / Average total assets D. (Net income minus− Interest expense) / Total assets

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Complete each equation by selecting the missing term. Then, select the financial statement that the equation illustrates. (a) Assets = Liabilities + Capital Stock +? Statement (b) Retained Earnings (beginning balance) + Net Income - Dividends = ? Statement (c)? Statement Expenses Net Income.