Concept explainers
1.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
Debt ratio is calculated from debt dividing by the total assets.
Balance sheet is a statement which shows the closing balance of the Assets, liabilities and Equities.
To Calculate: Prepare Balance sheet with equity balance.
2.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
Debt ratio is calculated from debt dividing by the total assets.
To Calculate: Calculate total income of the company of 2018.
3.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
Debt ratio is calculated from debt dividing by the total assets.
To Calculate: Debt ratio of current year of the company.
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Check out a sample textbook solutionChapter 2 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
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