Accounting

Question 1

Fundamental accounting equation

Answer 1

A = L + OE

Question 2

What to remember about balance sheet?

Answer 2

1. As at [date]
2. Current assets listed by liquidity
3. Longterm assets listed by time kept
4. Liabilities listed by maturity date
5. Owner’s Equity: lastName. A, Capital

Question 3

What to remember about income statement?

Answer 3

1. For the Year Ended [date]

2. Use $ sign on first entry of second column

Question 4

How is COGS ordered on income statement?

Answer 4

Beginning inventory [date]
Add: Purchases
Cost of goods available for sale
Less: Ending inventory [date]
Cost of goods sold
Gross profit

Question 5

Example of something that is not legal tender

Answer 5

Check