Financial statement: The Financial statement is the part of final accounts of the company. The primary books of accounts like journal, ledgers are not presentable in front of users of the accounting information, that’s why the accountant of the company will prepare financial statements. The financial statement only records the quantitative information instead of qualitative one. Assets: Assets are the resources that a company needs to run the business. An asset is economic resources of the company. Liabilities: Liabilities are generally the amount owned by the company from lenders, suppliers, or a bank. Liabilities are the burden on the company that they have to pay to others. Equity: The Company needs finance to run the business. Equity is one of the methods through which the company raises the capital. Accounting equation : The assets, liabilities and equity relation is known as the accounting equation. Assets are the resources of the company and that increase as business expand whereas liabilities are the burden on a company that has to pay in future; Equity means the owner claim on assets. An accounting equation represents the Assets of the Company are equal to the liabilities and Equity of the company a. To identify: The amount of assets liabilities and equity.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 17QS

To determine

Financial statement:

The Financial statement is the part of final accounts of the company. The primary books of accounts like journal, ledgers are not presentable in front of users of the accounting information, that’s why the accountant of the company will prepare financial statements. The financial statement only records the quantitative information instead of qualitative one.

Assets:

Assets are the resources that a company needs to run the business. An asset is economic resources of the company.

Liabilities:

Liabilities are generally the amount owned by the company from lenders, suppliers, or a bank. Liabilities are the burden on the company that they have to pay to others.

Equity:

The Company needs finance to run the business. Equity is one of the methods through which the company raises the capital.

Accounting equation:

The assets, liabilities and equity relation is known as the accounting equation. Assets are the resources of the company and that increase as business expand whereas liabilities are the burden on a company that has to pay in future; Equity means the owner claim on assets. An accounting equation represents the Assets of the Company are equal to the liabilities and Equity of the company

a.

To identify: The amount of assets liabilities and equity.

b.

To determine

To verify: Accounting equation

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

general accounting

Weston Industries uses a predetermined overhead rate of $19.75 per direct labor hour. This predetermined rate was based on a cost formula that estimates $245,000 of total manufacturing overhead for an estimated activity level of 12,400 direct labor hours. The company incurred actual total manufacturing overhead costs of $238,000 and 11,900 total direct labor hours during the period. Determine the amount of underapplied or overapplied manufacturing overhead for the period.

Solve this accounting issue without use Ai