
Balance sheet:
Balance sheet is a financial statement that shows the available assets (owner’s equity and outsider’s equity) and owed liabilities from investing and financial activities of a company. This statement reveals the financial health of company. So, this statement is also called as
Income statement:
Income statement is a 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.
To identify: Whether each of the following account is either a balance sheet or an income statement, and to identify for each balance sheet account, whether it is an asset, a liability, owner’s equity, and for each income statement account, whether it is a revenue or an expense.

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Chapter 2 Solutions
Corporate Financial Accounting
- Norah Industries allocates overhead at a fixed rate of $32 per hour based on direct labor hours. During the month, the total overhead incurred was $192,000, and the total direct labor hours worked was 4,800. Job number 7-45 had 560 hours of direct labor. What is the amount of overhead allocated to job 7-45? a. $20,000 b. $17,920 c. $15,000 d. $12,500arrow_forwardValor Systems is considering a project that will produce incremental annual sales of $320,000 and increase cash expenses by $205,000. If the project is implemented, taxes will increase from $31,000 to $37,000. The company is debt-free. What is the amount of the operating cash flow using the top-down approach?arrow_forwardWhat is the ending inventory?arrow_forward
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