how does business owners can use the statement of profit and loss or income statement and balance sheet or statement of financial position in making business or economic decisions.

Q: How does accounting provide useful information about economic activities?

A: Whenever a company wants to make decisions that include money that decision comes under the economic…

Q: How does the time period assumption affect an accountant's analysis of business transactions ?

A: Time period assumption state that business organizations are required to prepare and present their…

Q: What  are business transactions called that increase owner’s equity as a result of providing a…

A: A liability is amount payable or obligation which results from past event, whose payment needs…

Q: How did you calculate Net Income from business?

A: Net income from business = Business Revenue - Business expenses

Q: Are financial statements accurate to evaluate business?

A: Financial statements refer to the written records that tell the financial performance and position…

Q: how will a change from cash basis accounting to accural basis accounting positively and negatively…

A: Books of accounts can be maintained either using the cash basis accounting or using the accrual…

Q: How do financial statements (balance sheet, income statement, and cash flow statement) contribute to…

A: Financial statements are official records that offer a summary of a company's cash flow, position,…

Q: How can accounting information be used to make financial decisions? Provide examples of how…

A: Accounting information refers to the data and financial statements generated by the accounting…

Q: Tnese finanCial statemer ems are for Sa mpany at year-end, July 31, Salaries and wages payable…

A: The owners equity statement includes all the profits and losses related to shareholders.

Q: Thinking of revenue, expenses, and profits, where should an investor focus their attention on the…

A: Investors are the shareholders of the company, they receive dividend from the profit of the company

Q: Which financial ratio under the categories of profitability, asset utilization, liquidity, and debt…

A: Financial ratio can be defined as the accounting ratio which helps the business in evaluating the…

Q: Which among the following statements is prepared to know the financial position of the business? a.…

A: Option d is correct. Statement  Shows Income statement  Financial performance of company…

Q: How might stockholders use information  to manage business operations ?

A: Stockholders:- Stockholders are those who invested in the company's shares and equity. They are the…

Q: Cash Short-term investments Accounts receivable, net Supplies Prepaid expenses Long-term notes…

A: Income Statement is a financial statement that includes revenue earned and expenses incurred during…

Q: Explain how accounting is used to track and monitor the economic events that impact business…

A: Accounting is defined in simple terms as an art of keeping the record of financial transactions of a…

Q: Financial statement analysis applies analytical tools to financial stateme and related data for…

A: Financial statements analysis is used by internal and external stakeholders to evaluate business…

Q: How does net income affect the operation of the business?

A: The bottom line of income statement is net income. It’s the outcome of sales and gains minus the…

Q: Define Accounting and its importance in the field of business.Define owner’s equity and how it is…

A: Accounting is a system that identifies ,records and communicates relevant information that is…

Q: The statement of financial position is a financial statement that shows both the gross profit and…

A: The statement of Financial Position shows what a company owns and what a company owes to  the…

Q: How does accounting theory influence accounting practices and accounting issues? Discuss the…

A: Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions…

Q: How can I explain the types of day-to-day business decisions made by using financial statements.

A: Financial statements are written statistics that carry the business sports and the economic overall…

Q: How do accountants help businesses make informed financial decisions?

A: A person who has received training to manage the financial information and offer financial advice is…

Q: t, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows) are helpful to the…

A: The most significant components of financial statements are the income statement, balance sheet, and…

Q: What is a mathematical equation in accounting? Which financial statement contains information on the…

A: This question tells about mathematical equation in accounting and  financial statement contains…

Q: How do the income statement and the balance sheet help management make good decisions?

A: Financial statements are include those statements which are important and essential for every…

Q: What do you mean by accounting in business? Explain the Accounting Cycle in detail?

A: Accounting represents the process of recording the financial and non financial transactions in the…

Q: What is the role of accounting in business?  Elaborate your points by providing some real-life…

A: Let us first determine and understand what accounting is. Accounting is the process or the system of…

Q: Define Income Statement, Statement of Owners Equity, Balance Sheet, and Cash Flow Statement. How do…

A: The Income Statement, Statement of Owners Equity, Balance Sheet, and Cash Flow Statement are all…

Q: How do business transactions affect the accounting records of a company?

A: Accounting Records - Accounting records are the transaction recorded by the organization from past…

Q: What is included in the financial section of a business plan?     a. the industry, business…

A: Financial section of the business represent the financial position of the firm now and what it will…

Q: Using the following categories, discuss the differences that exist between accounting for these…

A: Accounting is the process of recording financial transactions in a business. Accounting is the…

Q: Analyze business transactions using the accounting equation.

A: Accounting equation is based on double entry system of accounting which says that for every…

Q: Which of the following types of businesses require financial information to operate effectively?

A: The following types of businesses require financial information to operate effectively are:(1)…

Q: What is accounting? What type of information is provided by the accountants? How does an…

A: Meaning of Accounting: Accounting is the process of recording financial transactions pertaining to…

Q: What are the types of Balance Sheet analysis and how can it help a business.

A: Balance sheet: The balance sheet depicts a company's financial position by recording all of its…

Q: What is the business activity that's occurring for the customer? Describe the transaction in…

A: Companies sometimes issue cheques for the Payment of certain expenses and to the Payment of their…

Q: A concept of accounting that indicates that the financial records of the business should be kept…

A: Business: A business is an organization entirely made for earning profits or for fulfilling social…