Financial Statements: financial accounting is the branch of accounting concerned with communicating financial information to outsiders through financial statements.
Financial statements: It consists of four major statements:
- Balance sheet summarizes assets, liabilities and owners’ equity of a company, used to assess financial position of a company.
- An income statement summarizes the revenue and expenses of a company for a period and used to calculate profit or loss.
- Statement of retained earning shows the portion of earnings retained in the business and
- Statement of cash flows shows how the cash company got cash and where it is used during a period.
To prepare: The correct income statement for December 31 2016.
b.
Financial Statements: financial accounting is the branch of accounting concerned with communicating financial information to outsiders through financial statements.
Financial statements: It consists of four major statements: balance sheet, income statement, statement of retained earnings, and statement of cash flows.
- Balance sheet summarizes assets, liabilities and owners’ equity of a company, used to assess financial position of a company.
- An income statement summarizes the revenue and expenses of a company for a period and used to calculate profit or loss.
- Statement of retained earning shows the portion of earnings retained in the business and
- Statement of cash flows shows how the cash company got cash and where it is used during a period.
To prepare: The correct retained earnings.
c
Financial Statements: financial accounting is the branch of accounting concerned with communicating financial information to outsiders through financial statements.
Financial statements: It consists of four major statements: balance sheet, income statement, statement of retained earnings, and statement of cash flows.
- Balance sheet summarizes assets, liabilities and owners’ equity of a company, used to assess financial position of a company.
- An income statement summarizes the revenue and expenses of a company for a period and used to calculate profit or loss.
- Statement of retained earning shows the portion of earnings retained in the business and
- Statement of cash flows shows how the cash company got cash and where it is used during a period.
To prepare: The balance sheet for the year ended December 31 2016
d.
Financial Statements: financial accounting is the branch of accounting concerned with communicating financial information to outsiders through financial statements.
Financial statements: It consists of four major statements: balance sheet, income statement, statement of retained earnings, and statement of cash flows.
- Balance sheet summarizes assets, liabilities and owners’ equity of a company, used to assess financial position of a company.
- An income statement summarizes the revenue and expenses of a company for a period and used to calculate profit or loss.
- Statement of retained earning shows the portion of earnings retained in the business and
- Statement of cash flows shows how the cash company got cash and where it is used during a period.
To draft: A memo to president explaining difference between the income statements provided and corrected statement.
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Chapter 1 Solutions
Financial Accounting: The Impact on Decision Makers
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