A balance sheet has 4 sections. They are: Heading, Assets, Liabilities, and Owner’s Equity.
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Transcript of A balance sheet has 4 sections. They are: Heading, Assets, Liabilities, and Owner’s Equity.
The owner’s capital amount reported on a balance sheet is
calculated as:
For a Net Income:
Beginning Capital + Net Income – Drawing
For a Net Loss:
Beginning Capital – Net Loss - Drawing
The net income calculated for the income statement and the net
income on the work sheet must be
The Same
The _______ _______accounting concept is applied when financial statements contain all information
necessary to understand a business’s financial condition.
Adequate Disclosure
On an Income Statement, double lines are ruled across both
amount columns to indicate ___?
The amount matches the Net Income/Net Loss on the
Worksheet.
For a service business, the ______ reported on an Income
Statement includes components for total expenses and net
income.
Revenue
The formula for calculating the total expenses component
percentage is ____?
Total Expenses Divided by Total Sales
The owner’s equity section of a balance sheet may report different
kinds of details about _____ _____. Depending on the need of
the business.
Owner’s Equity
Component percentages on an Income Statement are calculated
by ________________?
Divide the amount of each component by the total amount of
sales.
A component percentage is the ______ relationship between one financial statement item and the
total that includes that item.
Percentage
An Income Statement reports information over a period of time, indicating the financial progress of a business in earning a ______ or
______.
Net Income or Net Loss
The Matching Expense with Revenue accounting concept is applied when the _____ earned
and the expenses incurred to earn that revenue are reported in the
same fiscal period.
Revenue
Information needed to prepare an Income Statement comes from the _______ columns of
a worksheet.
Income Statement
A _____ _____ reports financial information for a specific date
and includes the assets, liabilities, and owner’s equity.
Balance Sheet
When a business has two different sources of revenue, do you complete one or two
Income Statements?
One
The date on a monthly Income Statement prepared on July 13 is written as `
For Month Ended July 13, 2011
The amount of Net Income calculated on the Income
Statement should equal ______?
The Net Income or Net Loss on the Worksheet.
Preparing financial statements at the end of each monthly fiscal period is an application of the accounting concept _____.
Accounting Period Cycle
Information needed to prepare an Income Statement’s Revenue
section is obtained from a worksheet’s Income Statement
_____ column.
Credit
The formula for calculating the net income component percentage is
________.
Net Income divided by Total Sales.
Information needed to prepare the balance sheets liabilities section is
obtained from a worksheet’s Balance Sheet ______ column.
Balance Sheet Credit Column
Assuring the financial statements contain all information necessary
to understand a business’s financial condition is an
application of the accounting concept ___________.
Adequate Disclosure