Concept explainers
(a)
Financial statement
A financial statement is the complete record of financial transactions that take place in a company at a particular point of time. It provides important financial information like assets, liabilities, revenues and expenses of the company to its internal and external users. It helps them to know the exact financial position of the company. There are four basic financial statements; they are:
Figure (1)
To indicate: inwhich financial statement each of the given financial items would appear.
(b)
To indicate: inwhich financial statement each of the given financial items would appear.
(c)
To indicate: inwhich financial statement each of the given financial items would appear.
(d)
To indicate: inwhich financial statement each of the given financial items would appear.
(e)
To indicate: inwhich financial statement each of the given financial items would appear.
(f)
To indicate: inwhich financial statement each of the given financial items would appear.
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
- Consider the following accounts, and determine if the account is an asset (A), a liability (L), or equity (E). A. Accounts Payable B. Cash C. Dividends D. Notes Payablearrow_forwardIdentify the financial statement on which each of the following accounts would appear: the income statement (IS), the retained earnings statement (RE), or the Balance Sheet (BS). A. Insurance Expense B. Accounts Receivable C. Office Supplies D. Sales Revenue E. Common Stock F. Notes Payablearrow_forwardFor each of the following accounts, place the letter of the financial statement on which it would be found in the space provided.1) Treasury Stock2) Amoritization Expense3) Trucks4) Gain on Sale of Equipment5)Unearned Revenues6) Accounts Receivablearrow_forward
- For each ofthe following accounts, identify whether that item is an asset, liability, or equity account.a. Bonds payableb. Equipmentc. Accounts payabled. Salaries payablee. Common stockf. Retained earningsg. Cashh. Accounts receivablei. Sales revenuej. Inventoryarrow_forwardAccording to generally accepted accounting principles, whatis the balance sheet valuation of each of the following assets?(a) Trade accounts receivable.(b) Land.(c) Inventories.(d) Trading securities (common stock of other companies).(e) Prepaid expenses.arrow_forwardIdentifying accounts on the financial statements Consider the following accounts: a. Accounts Payable b. Cash c. Common Stock d. Accounts Receivable e. Rent Expense f. Service Revenue g. Office Supplies h. Dividends i. Land j. Salaries Expense Identify the financial statement (or statements) that each account would appear on. Use I for Income Statement, RE for Statement of Retained Earnings, and B for Balance Sheet.arrow_forward
- (a)Explain, using practical example the effect of accruals figures on the preparation of a financial statement. (b)Suggest Four reasons why there might be difference between the balance on the receivable ledger control account and the total list of accounts receivable ledger balances. (c)Explain, using practical example how Capital expenditure should be capitalizedarrow_forwardThe following data were taken from the Statement of Affairs of Greenfield Corporation: What is the estimated amount holders of the accounts payable will receive upon?arrow_forwardWhich of the following would you find in the financial statements? a) Information about principal, interest, and maturity of long term debt. b) Discussion of the company's results of operations. c) Financial position on a particular date. d) A qualified opinion.arrow_forward
- for each of the financial statement items, identify the estimate(s) from the following (1-11) list that are required in the measurement of that item on the financial statements. For each select 3 of them. Account Receivable A. b, C, • Inventory A. b, C, Equipment A. b, C, Warranty Liability A. b, C, Sales revenue А, b, C, Revenue from long term contract b, A. Cost of good sold. C, A. C, 1. Cost to repair or replace product. 2. Cost of each item sold/held. 3. Customer default rate 4. Degree of progress fulfilling contract. 5. Pattern of benefit obtained. 6. Prices of inventory items 7. Profitability of contract 8. Rate of defect 9. Residual value at end of useful life 10. Speed of collection 11. Useful livesarrow_forwardWhich of the following are reported on the income statement? Check all that apply. Dividends Revenue Common Stock Unearned Revenue Prepaid Rent Accounts Receivable Accounts Payablearrow_forwardBills for collection are shown O a. On Assets side of the balance sheet O b. On liabilities side of the balance sheet Oc. On the income side of the income statement Od. As note below the balance sheetarrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning