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Concept explainers
1.
Net income: Net income is the excess amount of revenue which arises after deducting all the expenses of a company. In simple terms, it is the difference between total revenue and total expenses of the company.
To Calculate: The net income.
2.
Dividends: Dividends are the rewards to the stockholders for investing their money in the company. Payment of dividend depends upon the decision of the management.
To Calculate: The dividends.
3.
Liability: Liabilities include the claims of the creditors on the assets of the business. The liability is the obligation of the business.
To Calculate: The liabilities.
4.
Financing activities: Financing activities refer to the activities carried out by a company to mobilize funds to carry out the business activities. The examples for financing activities are purchase of bonds, issuance of common shares, and others.
To Calculate: The net financing activities.
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Chapter 1 Solutions
Financial Accounting
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