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(1)
Transaction: The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions.
Accounting equation is expressed as shown below:
Income statement: The financial statement which reports revenues and expenses from business operations, and the result of those operations as net income or net loss for a particular time period is referred to as income statement.
Statement of
Return on Assets (ROA): This financial ratio evaluates how efficiently the assets are used in earning net income. So, ROA is a tool used to measure the performance of a company.
Formula of ROA:
To analyze: The transactions of CC Company, using the accounting equation in the given format
(2)
To prepare: Income statement of CC Company for the month ended November 30, 2018.
(3)
To prepare: Statement of retained earnings of CC Company for the month ended November 30, 2018.
(4)
To prepare: Balance sheet of CC Company on November 30, 2018.
(5)
To solve: ROA for CC Company for November 2018.
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Chapter 1 Solutions
Horngren's Financial & Managerial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (6th Edition)
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