For each transaction recorded in an accounting system, the basic equation * :that must be maintained at all times is Cash Increases = Cash Decreases. Assets = Liabilities. Revenues = Expenses + Dividends. Assets = Liabilities + Stockholders' Equity.
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- Which of the following fi nancial statements is generallyprepared fi rst?a. Income statement.b. Balance sheet.c. Statement of retained earnings.d. Statement of cash fl ows.Accounts Receivable will appear on which of the following financial statements?a. Income statementb. Statement of retained earningsc. Balance sheetd. Statement of cash flowsDirections: Fill in the following table using the equation: ∆Cash = - ∆Noncash Assets + ∆Liabilities + ∆Stockholders Equity. Indicate the name of the noncash asset, liability, or equity account affected by the transaction and if change in cash is classified as operating (O), investing (I), financing (F), or noncash (NC). The first line has been completed for you as an exampleItem∆Cash = - ∆Noncash Assets + ∆Liabilities + ∆Stockholders Equity1. Prepaid office rent for cash -O = - + Prepaid Rent + + 2. Sale of land held for cash = - + + 3. Cash payment of taxes payable = - + + 4. Issue preferred stock to investors for cash = - + + 5. Purchase equipment that is financed directly by the seller = - + + 6. Paid cash dividend = - + + 7. Pay notes payable = - + + 8. Pay interest payable = - + +
- 4- The balance of payments is most like a(n)___________ * Cashflow Statement Income Statement Statement of Equity Balance SheetWith the following economic events, please create the following: - A detailed transaction receipt w/ details regarding spending per event (for ex. debit cash + credit common stock, etc.) - A statement of cash flows - An income statement - A balance sheet - A statement of changes for stockholders equity Thank you so much!the financial statements are interrelated .what time of financial or operating data appears on both the income sttement and the statement of owners equity? what item appears on both balance sheet and the statementof owners equity ?what itenm appears on both the balance sheet and statement of cash flows?
- Classify each of the following items as an Asset (A), Liability (L), or part of Owner’s Equity (OE). a. Computer Tabletb. Accounts Payablec. Accounts Receivabled. Cashe. A. Jones, CapitalLiquid assets is determined by Select one: a. Current assets - current liabilities O b. Current liabilities- Bank overdraft c. Current assets +stock+ prepaid expenses O d. Current assets-stock-Prepaid expensesThe accounting equation is expressed as ________.A. Assets + Liabilities = Owner’s EquityB. Assets – Noncurrent Assets = LiabilitiesC. Assets = Liabilities + Investments by OwnersD. Assets = Liabilities + Owner’s Equity
- Identify the missing information from the accounting equation. Signify increases as Incr. and decreases as Decr. In each box you have the options: -Assets -Credit -Debit -Decr. -Equity -Incr. -Liabilities -Owner, Withdrawals. The amount a company expects to collect from customers appears on thea. balance sheet in the current assets section.b. balance sheet in the stockholders’ equity section.c. statement of cash flows.d. income statement in the expenses section.Which of the following accounts is increased by a debit?A. Common StockB. Accounts PayableC. SuppliesD. Service Revenue