
Concept introduction:
Revenues: Revenue is the income or gain generated by a business entity by the sale of goods or by providing services to customers or clients. The revenue refers to the inflow of cash or cash equivalents into a business entity. It is also called the turnover.
Expenses: Expenses refers to the outflow of cash or cash equivalents from a business entity. Expenses occur in carrying out activities like manufacturing, maintenance, labor or advertisement. These expenses are incurred to help the business entity to earn revenue during the current year or also at a future time period.
Withdrawals: The drawings made by the owner from the portion/share of capital invested by him out of the total capital for personal purposes are called withdrawals.
Asset: A resource which will generate a
Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called the liability. Mortgages, accounts payables, accrued expenses, loan are recorded on the right hand side of the balance sheet.
Equity: Equity is the value of an asset less the amount of all liabilities on that asset. It can be represented with the
1. To write: Find out the missing financial statement amount
2. To write: Find out the missing financial statement amount

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Chapter 1 Solutions
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
- Fill in the missing information from the balance sheet. Solace Corporation Balance Sheet As of December 31, 2016 (Amounts in thousands) • • Cash: $4,200 Other assets: $3,800 • Liabilities: $4,500 • Equity: To be determined • Total assets: To be determined Total liabilities and equity: To be determined What is the value of equity?arrow_forwardFinancial accountingarrow_forwardDo fast answer of this question general accountingarrow_forward
- I'm waiting for answerarrow_forwardA company's accounts receivable balance is $350,000, and its annual sales are $2,800,000. What is the average collection period (or days sales outstanding)? a. 45.63 days b. 32.50 days c. 36.45 days d. 40.75 daysarrow_forwardhello teacher please help me accounting questionarrow_forward
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