Chapter 2

Question 1

Balance Sheet

Answer 1

Document designed to show the state of affairs

Question 2

What are the resources and how are the differently called?

Answer 2

Assets and applications

Question 3

What are the sources?

Answer 3

Equity, liabilities and capital

Question 4

What are the expenses?

Answer 4

Resources used up in the period(costs of goods sold+wages)

Question 5

When owners invest in the business does the entity has any legal obligation to pay back by any praticular date?

Answer 5

No

Question 6

What is equity?

Answer 6

It is the source of cash that entity now owns.

Question 7

Profits

Answer 7

They are a source.Source is the successful result of trading operation. Kada imamo pozitivan profit to mozemo izraziti kao increase in assets. Kada imamo reduction in profits to je fall in assets.The profit can also be seen as the size of the increase of the entity(total claim that the owner now has of the entity). This claim is the owner’s equity:the original capital plus profit. Making a profit leads to extra resources and it increases the claims on the business from the owners.

Question 8

When are the assets of the company gonna grow?

Answer 8

When there is excess of income over expenses.

Question 9

Accounting equation

Answer 9

Assets+Expenses=Owner’s Equity+Liabilities+Income

Question 10

Net asset equation=Equity

Answer 10

Assets-Liabilities

Question 10

What is the main difference between assets and expenses?

Answer 10

Assets asre resources that we can use in the future and expenses are resources that we have already used.

Question 10

Net income equation

Answer 10

Razlika izmedju income i expenses. Pokazuje nam za koliko smo bogatiji ili siromašniji. Net income je dakle isto što profit/loss.

Question 11

Accural accounting

Answer 11

Income and expenses are generated when they happen not when the cas arrives

Question 12

Šta beležimo kadanam neko plaća na odloženo?

Answer 12

Beležimo income, ali ne cash. Cash se ne menja.

Question 13

Accounts receivable

Answer 13

=asset

Question 14

Accounts payable

Answer 14

=liabilities

Question 15

Maturity date

Answer 15

A date by when a bank has to be repaid

Question 16

Financial sector

Answer 16

Sectors of the management represented by increases or decreases in cash, credits and debts. It concerns usement of our money.

Question 17

Economic sector

Answer 17

Sectors of the management regarding changes of owner’s equity obtained as difference between revenues and expenses of the period. The economic substance of the firm is given by owner’s equity, originally invested, increased by profit or lossses.

Question 18

Financing liabilities

Answer 18

Obligations that arise from all forms of debt financing(interest-bearing liabilities).

Question 19

Operating liabilities

Answer 19

Obligations that arise form operations(npr. accounts paybale, wages to pay)