Concept explainers
1.
Concept Introduction:
Accounting has a 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.
The debt ratio is calculated from debt dividing by the total assets.
The balance sheet is a statement that shows the closing balance of the Assets, liabilities and Equities.
To Calculate: Prepare a Balance sheet with equity balance.
2.
Concept Introduction:
Accounting has a 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 the total income of the company of 2018.
3.
Concept Introduction:
Accounting has a 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.
The debt ratio is calculated from debt dividing by the total assets.
To Calculate: Debt ratio of the current year of the company.
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Loose Leaf for Financial Accounting: Information for Decisions
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