Chapter 4, Problem S4.6SE

To determine

Financial Statements: Financial statements are reports prepared by the management that shows the financial position of a business. It mainly includes income statement, statement of owner’s equity, cash flow statement and balance sheet.

1. To determine: The type of normal balance does the owner, capital account have.

To determine

2. To determine: The type of income statement account that has the same type of the balance as the Owner, Capital account.

To determine

3. To determine: The type of income statement account that has the opposite type of the balance as the Owner, Capital account.

To determine

4. To determine: The name for the difference between total debits and total credits on the income statement section of the worksheet.