financial statements and how these three important financial statements has made analyst life simpler by ensuring consistency in reporting. Balance sheet‚ income statement and cash flow statement are the three important financial statements. Balance sheet: A Balance Sheet is a financial statement that shows the financial position at a given date. Balance sheet includes a company’s assets and liabilities. Assets are what we own and these are of two types; fixed asset and currents assets. Current assets
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the bank balance of $18‚900 at March 31. This is not valid for determining income because it only shows the change in cash between to points in time. b) Using the balance sheet to conclude the net income is not valid because there is no net income on the balance sheet. You get the net income from the income statement and it goes on the balance sheet when you close the books for the year. Then it moves to the retained earnings segment in the balance sheet. At March 31 the balance sheet does not
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prepared? A. Balance sheet‚ income statement‚ statement of cash flows‚ and capital statement B. Income statement‚ capital statement‚ statement of cash flows‚ and balance sheet C. Balance sheet‚ capital statement‚ statement of cash flows‚ and income statement D. Income statement‚ capital statement‚ balance sheet‚ and statement of cash flows 3. In classifying transactions‚ which of the following is true in regard to assets? A. Normal balances and increases are debits B. Normal balances and decreases
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includes common stock and retained earnings. The accounting balance sheet is one of the biggest financial statements used by accountants and business owners‚ these are income statements‚ cash flow statements‚ and stockholders equity statements. Balance sheet allows the creditor to see what a company owns as well as what he owes. These are very important things for someone to know for potential investors and others. So as we know‚ the balance sheet reflects the accounting equation‚ it shows the reports
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19‚ 2012 Instructor: Carl Schulz Abstract The purpose of this paper is to discuss current and noncurrent assets‚ define the differences and similarities between the two‚ and address what the order of liquidity is and how it applies to the balance sheet. In business an asset is defined as a property or equipment owned by a company that has a positive economic value. There are two main types of assets: current assets and non-current assets. Current Asset Current assets are assets that
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statements reported the following (in millions). Cash December 31‚ 2011 Cash from operating activities Cash from investing activities Cash from financing activities $ 2‚772 773 (902) 896 What did Goodyear report for Cash on its December 31‚ 2010 balance sheet? A) $2‚772 million B) $3‚539 million C) $767 million D) $2‚005 million E) None of the above Answer: D Rationale: Cash‚ beginning of year + Cash from operating activities + Cash from investing activities + Cash from financing activities = Cash at
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(McGladrey‚ Pullen‚ 2006). The third statement is the balance sheet. The balance sheet is a broad look at the organizations standing. The balance sheet shows the assets‚ liabilities‚ and stockholder ’s equity for a specific period of time. The assets are listed at the top of the balance sheet‚ followed by the liabilities and stockholders ’ equity. Assets and liabilities are divided into short-term and long-term. The bottom line of the balance sheet must be equal‚ which means assets must equal the liabilities
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Case 12-02 To Recognize or Not to Recognize‚ That Is the Question Shakespeare Inc. (“Shakespeare” or the “Company”) is a privately held book printing and publishing company with a December 31 year-end. The summary balance sheet as of December 31‚ 2010‚ included: Current assets Noncurrent assets Total assets Current liabilities Noncurrent liabilities Total liabilities Total shareholder equity $ 6‚500‚000 28‚250‚000 $34‚750‚000 $ 4‚500‚000 13‚750‚000 $18‚250‚000 $16‚500‚000 The summary results of
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1. a) b) c) d) A firm has the following items on its balance sheet: Cash $20‚000‚000 inventory 134‚000‚000 Notes Payable to bank 31‚500‚000 common stock ($10 par; 1‚000‚000) 10‚000‚000 Retained earnings 98‚500‚000 Describe how each of these account would appear after: A cash dividend of $1 per share Cash will decrease by $1‚000‚000. Retained earnings will decrease by $1‚000‚000. All other accounts are not affected. A 10 percent stock dividend (fair market value of stock is $13 per
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B. | Capital stock‚ additional paid-in capital‚ retained earnings | | C. | Capital stock‚ appropriated retained earnings‚ unappropriated retained earnings | | D. | Preferred stock‚ common stock‚ treasury stock | Which of the following balance sheet classifications would normally require the greatest amount of supplementary disclosure? | A. | Plant assets | | B. | Current assets | | C. |
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