Concept Introduction:
Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement,
Balance Sheet: The Balance sheet is a summary of Assets, Liabilities and equity accounts that reports the financial position of the business as on a specific date. Assets are further classifies into Current Assets, Long Term Investments, Plant Assets and Intangible assets. And Liabilities are further classified into Current Liabilities and Long term liabilities.
To Indicate:
The appropriate classification on the balance sheet for the items given.
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Chapter 1 Solutions
Bundle: Cornerstones Of Financial Accounting, Loose-leaf Version, 4th + Lms Integrated Cengagenowv2, 1 Term Printed Access Card
- QUESTION ONE Identify and fully explain any FOUR qualitative characteristics of useful financial information. Outline the recognition criteria for the following elements of financial statements: Assets Liabilities Income Expensesarrow_forwarda. List the four types of financial statements b.Describe the interrelationshipbetween balance sheet and the income statementarrow_forwardElements of financial statements are prescribed by the Conceptual Framework of financial accounting. These elements include liabilities, equity, revenues, expenses and gains and losses. Required: a) By use of examples, list and describe five different sub-elements within equity. b) By use of examples describe gains and losses elements in financial statements.arrow_forward
- What is the objective of all Financial Statements A complete set of financial statements includes State at least 4 What is the criteria for current assets What is the criteria for current Liability Explain the following concepts Going concern Accrual basis of accounting Consistency of presentation Materiality and aggregation Offsetting Structure and content of financial statements in general some information must be displayed prominently, and repeated as necessary State the information State any 8 line items to be included on the face of the statement of financial positionarrow_forwardProblem 1 - Identify and Classify Accounts Required: Identify each account as either a balance sheet account or an income statement account. For each balance sheet account, indicate whether it is an asset, liability, or equity account. For each income statement account, indicate whether it is a revenue or expense account. Indentify the normal balance (debit or credit) for the account. Note: The Accounts that appear on the Statement of Equity, theoretically could also be chosen as appearing on the Balance Sheet Item Income Statement, Balance Sheet or Statement of Equity Asset, Liability, Equity, Revenue or Expense Debit or Credit Normal Balance 1 Accounts Payable 0 2 Fees Earned 0 3 Supplies 0 4 Prepaid Expenses 0 5 Supplies Expense 0 6 Cash 0 7 Unearned Rent 0 8 Land 0 9 Fuel Expense 0 10 Taxes Payable 0 11 Common…arrow_forwardClassification of Financial Statement Items Classify each of the following items according to (1) whether it belongs on the income statement (IS) or balance sheet (BS) and (2) whether it is a revenue (R), expense (E), asset (A), liability (L), or stockholders equity (SE) item.arrow_forward
- Identify the sources of the information needed to prepare the balance sheet.arrow_forwardFINANCIAL STATEMENT ACCOUNTS Label each of the following accounts as an asset (A), liability (L), owners equity (OE), revenue (R), or expense (E). Indicate the financial statement on which the account belongsincome statement (IS), statement of owners equity (SOE), or balance sheet (BS)in a format similar to the following.arrow_forwardCornerstone Exercise 1-16 Financial Statements Listed below are elements of the financial statements. a. Liabilities b. Net change in cash c. Assets d. Revenue Required: e. Cash flow from operating activities f. Expenses g. Stockholders' equity h. Dividends Match each financial statement item with its financial statement: balance sheet (B), income statement (I), retained earnings statement (RE), or statement of cash flows (CF).arrow_forward
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