Prepare Personal Finance Income statement. Introduction: Income statement shows the financial operating summary of a firm that is the net income earned or net loss suffered by a firm through reporting all the revenues earned and expenses (including taxes) incurred by the firm during a specific period of time.

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Answer 1

Question

Chapter 3, Problem 3.3P

a)

Summary Introduction

To determine:

Prepare Personal Finance Income statement.

Introduction:

Income statement shows the financial operating summary of a firm that is the net income earned or net loss suffered by a firm through reporting all the revenues earned and expenses (including taxes) incurred by the firm during a specific period of time.

b)

Summary Introduction

To determine: Cash surplus or deficit

Introduction:

Cash balance is the income remaining in hand after covering all the expenses.

It is formulated as

Cash balance = Income −Expense

c)

Summary Introduction

To determine: Use of Cash surplus

Introduction:

Cash surplus is attained when the income is greater than expenses.

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Answer 2

Question

Chapter 3, Problem 3.3P

a)

Summary Introduction

To determine:

Prepare Personal Finance Income statement.

Introduction:

Income statement shows the financial operating summary of a firm that is the net income earned or net loss suffered by a firm through reporting all the revenues earned and expenses (including taxes) incurred by the firm during a specific period of time.

b)

Summary Introduction

To determine: Cash surplus or deficit

Introduction:

Cash balance is the income remaining in hand after covering all the expenses.

It is formulated as

Cash balance = Income −Expense

c)

Summary Introduction

To determine: Use of Cash surplus

Introduction:

Cash surplus is attained when the income is greater than expenses.

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Answer 3

Question

Chapter 3, Problem 3.3P

a)

Summary Introduction

To determine:

Prepare Personal Finance Income statement.

Introduction:

Income statement shows the financial operating summary of a firm that is the net income earned or net loss suffered by a firm through reporting all the revenues earned and expenses (including taxes) incurred by the firm during a specific period of time.

b)

Summary Introduction

To determine: Cash surplus or deficit

Introduction:

Cash balance is the income remaining in hand after covering all the expenses.

It is formulated as

Cash balance = Income −Expense

c)

Summary Introduction

To determine: Use of Cash surplus

Introduction:

Cash surplus is attained when the income is greater than expenses.

Expert Solution & Answer

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Answer 4

Question

Chapter 3, Problem 3.3P

a)

Summary Introduction

To determine:

Prepare Personal Finance Income statement.

Introduction:

Income statement shows the financial operating summary of a firm that is the net income earned or net loss suffered by a firm through reporting all the revenues earned and expenses (including taxes) incurred by the firm during a specific period of time.

b)

Summary Introduction

To determine: Cash surplus or deficit

Introduction:

Cash balance is the income remaining in hand after covering all the expenses.

It is formulated as

Cash balance = Income −Expense

c)

Summary Introduction

To determine: Use of Cash surplus

Introduction:

Cash surplus is attained when the income is greater than expenses.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 3.3P

a)

Summary Introduction

To determine:

Prepare Personal Finance Income statement.

Introduction:

Income statement shows the financial operating summary of a firm that is the net income earned or net loss suffered by a firm through reporting all the revenues earned and expenses (including taxes) incurred by the firm during a specific period of time.

b)

Summary Introduction

To determine: Cash surplus or deficit

Introduction:

Cash balance is the income remaining in hand after covering all the expenses.

It is formulated as

Cash balance = Income −Expense

c)

Summary Introduction

To determine: Use of Cash surplus

Introduction:

Cash surplus is attained when the income is greater than expenses.

Answer 6

Chapter 3, Problem 3.3P

a)

Summary Introduction

To determine:

Prepare Personal Finance Income statement.

Introduction:

Income statement shows the financial operating summary of a firm that is the net income earned or net loss suffered by a firm through reporting all the revenues earned and expenses (including taxes) incurred by the firm during a specific period of time.

Answer 7

Chapter 3, Problem 3.3P

a)

Summary Introduction

To determine:

Prepare Personal Finance Income statement.

Introduction:

Income statement shows the financial operating summary of a firm that is the net income earned or net loss suffered by a firm through reporting all the revenues earned and expenses (including taxes) incurred by the firm during a specific period of time.

Answer 8

b)

Summary Introduction

To determine: Cash surplus or deficit

Introduction:

Cash balance is the income remaining in hand after covering all the expenses.

It is formulated as

Cash balance = Income −Expense

Answer 9

b)

Summary Introduction

To determine: Cash surplus or deficit

Introduction:

Cash balance is the income remaining in hand after covering all the expenses.

It is formulated as

Cash balance = Income −Expense

Answer 10

c)

Summary Introduction

To determine: Use of Cash surplus

Introduction:

Cash surplus is attained when the income is greater than expenses.

Answer 11

c)

Summary Introduction

To determine: Use of Cash surplus

Introduction:

Cash surplus is attained when the income is greater than expenses.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Solution Summary: The author explains that the Adam's family has a cash surplus of 29,341 as the income is greater than expenses. Cash surplus can be utilized to replace car, buy furniture, or pay for home loans.

Concept explainers

To determine: Cash surplus or deficit

Introduction:

Cash balance is the income remaining in hand after covering all the expenses.

It is formulated as

Cash balance = Income −Expense

To determine: Use of Cash surplus

Introduction:

Cash surplus is attained when the income is greater than expenses.

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Chapter 3 Solutions

Solution Summary: The author explains that the Adam's family has a cash surplus of 29,341 as the income is greater than expenses. Cash surplus can be utilized to replace car, buy furniture, or pay for home loans.

Concept explainers

To determine: Cash surplus or deficit Introduction: Cash balance is the income remaining in hand after covering all the expenses. It is formulated as Cash balance = Income −Expense

To determine: Use of Cash surplus Introduction: Cash surplus is attained when the income is greater than expenses.

Want to see the full answer?

Chapter 3 Solutions

To determine: Cash surplus or deficit

Introduction:

Cash balance is the income remaining in hand after covering all the expenses.

It is formulated as

Cash balance = Income −Expense

To determine: Use of Cash surplus

Introduction:

Cash surplus is attained when the income is greater than expenses.