Due: Name: Hour: ACCOUNTING I Chapter 7: Financial Statements for a Proprietorship Reading Guide Answer the following questions as you read Chapter 7,...
FINANCIAL STATEMENTS FOR A PROPRIETORSHIP ... Assign Application Problems 7-1, 7-2 p 194 Mastery Problem 7-3 p 195 Assign Challenge Problem 8-4 p 196
Financial Statements. In Chapter 7, you learn about Peachtree's financial statements. Once journal entries have been recorded and posted, financial statements .... 223. 8. Summary and Review, pp. 223-224 a. Going to the net, p. 224 b. True/make true
merchandising corporation. Analyze the financial data contained on the statements. Define the accounting terms introduced in this chapter. 1. 2. 3. 4. 5. 6. ..... operating expenses selling expenses administrative expenses operating income vertical a
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CHAPTER 3: PREPARING ... Natural business year—businesses will end their year at their ... necessary to have special accounting for transactions that cross from one
Chapter 8 ADJUSTING AND CLOSING ENTRIES FOR A SERVICE BUSINESS ... Steps in Accounting Cycle p. 217 . ... Assign Mastery Problem 8-4
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CHAPTER 3 Bob Anderson, ... Analyze the effect of business transactions on ... UCSB 2004 3-19 ACCOUNTING EQUATION-JOURNAL ENTRIES
c. Can result in a deferred income tax asset. d. Is never recorded. e. Is recorded whether or not the difference between taxable income and financial accounting
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Download The present value of the minimum lease payments amounts to substantially all ... If the lease transfers ownership of the asset to the lessee, it is a finance lease.
2 IFRS FOR SMES ILLUSTRATIVE FINANCIAL STATEMENTS This publication has been prepared for illustrative purposes only and does not constitute accounting or other
Download 17 Feb 2016 ... The net realizable value of the inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses. 4.17. Treasury shares. Air-France-KLM shares held
Download 15 Feb 2017 ... within the relevant business segments and departments to establish an inventory of customer contract types throughout the Group and to analyze each contract type using the five-step approach outlined within IFRS 15. In pa
The income statement shows all the revenue or income generated for the period less all expenses arriving at the period’s profit or loss. 3.2 Accounting Equation
Download 15 Feb 2017 ... within the relevant business segments and departments to establish an inventory of customer contract types throughout the Group and to analyze each contract type using the five-step approach outlined within IFRS 15. In pa
Download 15 Feb 2017 ... within the relevant business segments and departments to establish an inventory of customer contract types throughout the Group and to analyze each contract type using the five-step approach outlined within IFRS 15. In pa
March 2017
Download 17 Feb 2016 ... The net realizable value of the inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and selling expenses. 4.17. Treasury shares. Air-France-KLM shares held
Due:
Name: Hour: ACCOUNTING I Chapter 7: Financial Statements for a Proprietorship Reading Guide
Answer the following questions as you read Chapter 7, pages 188-207. LESSON 7-1 PREPARING AN INCOME STATEMENT 1. [1] 2.
Where can financial information needed by managers and owners be found?
What is the difference between financial accounting and managerial accounting?
[2]
3. [1] 4.
What is a financial statement with incomplete information similar to?
Explain the “Adequate Disclosure” concept.
[1]
5.
What are two financial statements that are prepared by accountants?
[2]
6. [1]
What is the “Going Concern” concept?
Accounting I
7.
[1] 8.
[1] 9. [1] 10.
Ch. 7 Reading Guide
What does it mean when an Income Statement reports financial information over a specific period of time? (Inference question—relate this to what you know about when information is reported on the work sheet or how the date is listed on the report)
An Income Statement shows the progress of a business. Using a dictionary or www.webster.com, what is meant by the term progress?
Where does the information come from to complete an Income Statement?
Which accounting concept is being applied when revenues earned are reported in the same fiscal period as the expenses incurred?
11. What are the four sections of an Income Statement for a service business?
[4]
12. When you have completed the Income Statement, how will you know if the Net Income or Net Loss you have reported is accurate (see steps on page 194)? [1]
2
Accounting I
13.
Ch. 7 Reading Guide
What does a single ruled-line on an income statement indicate (Inference—look at the example if you are not sure)? What does a double-ruled line on an income statement indicate?
[2]
14.
What is a financial ratio? What is ratio analysis?
[2]
15. [1] 16. [1] 17.
What is vertical analysis?
Why should financial ratios by analyzed by managers or owners?
How can a business tell if its financial ratios are acceptable? (list two ways)
[2]
18.
What is Return on Sales (ROS) ratio? What does this ratio help managers or owners analyze?
[2]
19.
How is an Income Statement prepared differently for a business with two or more revenue sources, as compared to a business with one revenue source (Inference— see pages 195 and 197 examples, specifically the revenue section)?
[2]
3
Accounting I
20.
Ch. 7 Reading Guide
What does an amount in parentheses on a financial statement represent?
LESSON 7-2 PREPARING A BALANCE SHEET 21. What does it mean when a Balance Sheet reports financial information on a specific date? (how the date is listed on the report) [1]
22. A Balance Sheet shows the financial condition of a business. What is meant by the word condition? Explain when a business if financially strong.
[2]
23. What could happen to a business if they are not financially strong? [1]
24. Where is information taken from to complete a Balance Sheet? [1]
25. What are the four sections of a balance sheet?
[4]
4
Accounting I
Ch. 7 Reading Guide
26. Think back to the first week or two of this class. What connection can you make with a Balance Sheet and a concept we’ve discussed many times in this class (Inference— see example on page 201). What does the Balance Sheet show? [2]
27. What are the two types of equities reported on the Balance Sheet?
[2]
28. Only current capital is reported on the Balance Sheet. How is current capital calculated for a business that has a net income? [1]
29. How is current capital calculated for a business with a net loss? [1]
30. What do you need to remember about listing capital on the Balance Sheet (see bottom of page 203)? [1]
