owner's equity is  A. added to assets and the two are equal to liabilities b. added to liabilities and the two are equal to assets c. subtracted from liabilities and the net amout is equal to assets d equal to the total of assets and liabilities

Q: Classify the accounts as either an asset (A), liability (L), or equity (EQ) account. Land

A: Asset represents resource of the business. Liability represents obligation of the business to the…

Q: Asset, liability, and stockholders' equity items Indicate whether each of the following is…

A: Balance sheet:  It refers to one of the financial statements that shows all the liabilities, equity…

Q: The balance sheet lists which of the following?A. assets, liabilities, and owners’ equityB.…

A: Every business wants to see and review its financial results at the end of the period. It means how…

Q: Which of the given series have the same effect on Owners' Equity? Select one: a. Owner's Drawings…

A: Owner's equity indicates the owner's balance in the firm it can be calculated by the following…

Q: Prepayments are presented: A. in statement of financial position as assets B. in statement of…

A: Prepayments are the amounts paid by us in advance for which benefit shall be received in the future.

Q: Unearned Revenue is classified as​ a(n) ________ account.         A. equity   B. revenue   C.…

A: Unearned revenue is money received by an individual or company for a service or product that has yet…

Q: Which of the following accounts are under owners equity? O a. Unearned revenue O b. Cash O .…

A: Solution: Retained earnings are undistributed profits of the company that are retained by the…

Q: Return on equity b. Total assets turnover c. Return on assets

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: True or false. Assets is equal to the sum of liabilities and owners equity

A: Assets are the rights and resources that are being held by the business. It includes current assets,…

Q: The net-worth is the difference between assets and liabilities and is also called as ..... (a)…

A: Company balance sheet consists of assets and liabilities and equity.

Q: 1. The accounting equation can be expressed as a. Assets + Liabilities = Shareholders' Equity b.…

A: Accounting equation, also known as basic accounting equation, provides the foundation for all…

Q: Define (a) assets, (b) liabilities, (c) equity, and (d) net assets.

A: Step 1   The elements of financial statements are the general categorization of items contained…

Q: income statement measures the results of :- A- total assets . B-owner's equity C- total current…

A: Explanation and the correct answer is given below,

Q: Compute for the total current assets, non-current assets, current liabilities, non-current…

A: Assets, Liabilities and Equity are three important elements of the balance sheet of the business

Q: provide the two names of (a) assets accounts (b) liability accounts and (c) equity accounts

A: a) Asset accounts : Assets are the resources held by company from which future economic benefits are…

Q: ) IDENTIFY THE REPORTING FINANCIAL STATEMENT (IS Income Stmt) OR S Balance Sheet). ) IDENTIFY…

A: Nature  of Accounts : According to Traditional Approach there are three types of accounts that are:…

Q: "Classify each of the following items as assets (A), liabilities (L), or equity (EQ). _____ 1.…

A: Asset means all those tangible and intangible things on which company has right to use and right to…

Q: A statement of owner's equity shows everything that affects the: a.Cash balance. b.liability account…

A: An equity statement – also referred to as a statement of owner’s equity or statement of changes in…

Q: Classify each of the following accounts as an asset (A), liability (L), or equity (EQ) account.…

A: We have to classify given account as an asset (A), liability (L), or equity (EQ) account.

Q: Classify each of the following accounts as an asset (A), liability (L), or equity (EQ) account. a.…

A: Introduction: Balance sheet: All liabilities and Assets are shown in Balance sheet. It tells the…

Q: Which of the following accounts is an owners equity account ? A.Account payable B.Prepaid expenses…

A: Owners Equity Account It is the owners' investment in an asset after all liabilities have been…

Q: Calculate : owner's equity Total assets

A: Total Equity of the business means capital invested by the business with net income earned in the…

Q: Owner's equity can be increased through a. withdrawals by the owner O b. investments by the owner O…

A: The question is based on the concept of Accounting Theory.

Q: Accrued revenues would appear on the balance sheet as A. assets B. liabilities C. capital D.…

A: As per revenue recognition principle,  revenues earned during a period should be recognized as…

Q: The​ owners' claims to the assets of the business are called​ ________.     A.equity   B.expenses…

A: As per the accounting equation,  Assets = Liabilities + Equity  and such relation always holds true.

Q: The gain or loss on net monetary position is computed as a. The difference between the “net monetary…

A: In the period of inflation, an entity incurs purchasing power loss on holding of monetary assets and…

Q: 2. The matching principle matches a. expenses with assets. b. expenses with revenues. C. assets with…

A: Matching Principle: It is a principle that matches the expenses with the revenue earned during the…

Q: xamples may include salaries, utilities, rent, insurance, and office supplies? A.Revenue B.Expense…

A: Salaries, utilities, insurance expense and office supplies expense insurance are indirect expenses…

Q: a) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to…

A: a. Computation of the equity to asset ratio of the bank: Excel computations: Worksheet…

Q: . Current assets DIVIDED BY current liabilities is the      a. Current Ratio       b. Net Worth…

A: Ratio analysis helps to analyze the financial statements of the company. The management can take…

Q: In a T-account debits appear in what manner? Multiple Choice O They are on the right under assets…

A: Meaning of T-account A casual form of a ledger is called as a T account because the structure of the…

Q: Which of the following statements is correct? O Assets - Liabilities = Ownership interest O Assets +…

A: The basic accounting equation as per double entry system of accounting is: Assets = Liabilities +…

Q: Which of the following debit and credit rules is correct?a. Increases in assets and liabilities are…

A: An asset is a resource of the firm having economic value and is expected generate positive cash…

Q: Asset, liability, and stockholders' equity items Indicate whether each of the following is…

A: a. Accounts Payable is a Liability (Current Liability) b. Cash is a Assets (Current Assets) c. Fees…

Q: Realized gains and losses on investments available for sale are reported a. as a current asset b.…

A: Realized gains and losses on investments available for sale are reported on the income statement…

Q: The balance in the Income Summary account before it is closed will be equal to   Question 1…

A: Income Summary Account Format

Q: The costs of doing business are classified as:a. assets.b. liabilities.c. revenues.d. expenses.

A: The correct option is option “d”. d. Expenses

Q: Included on the balance sheet are   a.assets, income, and expenses. b.assets, liabilities,…

A: All the incomes and expenses are written off in the income statement and do not appear in the…

Q: Owner's equity can be increased through, O a. withdrawals by the owner O b. expenses exceeding…

A: Withdrawals decreases the owner's equity. Expenses exceeding revenues results in loss further…

Q: A balance sheet classifies items into one of three main groups. These groups are: a. Income,…

A: Balance sheet: It can be defined as one of the financial statements that shows all the liabilities…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is