financial statements

Question 1

Statement of Owner’s Equity

Answer 1

owner beginning capital - owner withdrawals + net income

Question 2

balance sheet

Answer 2

asset = liabilities - owner’s equity. reports them at a specific time

Question 3

order of financial statements

Answer 3

1. income statement 2. statement of owner’s equity 3. balance sheet 4. statement of cash flows

Question 4

income statement

Answer 4

revenues-expenses= net income

Question 5

what is a 10-k

Answer 5

a report that is filed for the SEC for all publicly traded companies.

Question 6

what is a company annual report

Answer 6

a glossy report that is filed for the company’s owners for all publicly traded companies

Question 7

does a company annual report or 10-k need to be audited

Answer 7

both

Question 8

income statement defintion

Answer 8

reports the success or failure of a company during a period of time

Question 9

owner of equity definition

Answer 9

reports owner’s equity during a period of time

Question 10

balance sheet definition

Answer 10

reports assets and claims to those assets a specific point of time

Question 11

what is a general ledger

Answer 11

contains all of the accounts from the chart of accounts, and the transactional and balance data for each account

Question 12

what is a source document

Answer 12

identify and describe transactions and events entring into the accounting system

Question 13

Trial balance

Answer 13

to prove the mathematical equality of debit and credit