Great answers so far! And let's not forget that the balance sheet shows our most important...

Great answers so far! And let's not forget that the balance sheet shows our most important basic accounting equation. Assets=Liabilities + Owners Equity. This equation and keeping it in balance seems to be the main focus of the staff accountant. I want to also discussion the relationship of the balance sheet to the other financials statements. What order must we prepare the financial statements in and why? How are the other statements (Income Statement, Cashflows, Statement of RE) shown on the balance sheet?

Expert Solution

Assets=liabilities +owners equity

Above equation is most important basic equation of accounting, its represents the relationship between assets, liabilities and owners equity. The main focus of staff accountant to keeping it in balance because it is the foundation of double entry system, the equation shows that all assets of a business are either financed or company's stockholders. According to double entry system, every transaction has equal effects on both sides like debits and credits if there are any difference which means any transaction is missing or any mistake is occur thats why it is important to maintain this equation in balance.

First of all we adjusting entries of all monetary transactions have been made by business its called journal entries and then these entries transfer into ledger to the related accounts, trial balance has been prepared from ledger accounts .At the end following is the order of preparation of financial statements ----

*Income statement

*Statement of retained earnings

*Balance sheet

*Cash flow statements

Financial statements must prepare in above order because all above statements are inter-related. Data from previous statement is used to making next statement. Example -- Net income from income statement helps to make Statement of retained earnings...

Balance sheet presents financial position of business at the end of a specific date. It is most important statement used by the accountants. It is also called Statements of financial position. The other statements shown on the balance Sheet. Example --- All revenue and expenses like outstanding and prepaid and net income shown from income statement,how much earnings retained in business and how much distributed as dividend from statement of RE and cash and cash equivalents from statement of cash flow

ekkarill92 answered 1 year ago

Stockholders' equity is an important heading in a corporate balance sheet. Let's begin the discussion of...

Stockholders' equity is an important heading in a corporate balance sheet. Let's begin the discussion of stockholders' equity by asking a question: How is the Stockholders' Equity section of a corporate balance sheet different from that in a single-owner business? ANSWER ORIGINAL SOURCE NEVER USED BEFORE COPY AND PASTE PLEASE NOT AN ATTACHMENT ,THANK YOU

I have solved most of question and the answers I have so far are correct, I...

I have solved most of question and the answers I have so far are correct, I just need help finding out the lower bound and upper bound (All answers were generated using 1,000 trials and native Excel functionality.) Galaxy Co. distributes wireless routers to Internet service providers. Galaxy procures each router for $75 from its supplier and sells each router for $125. Monthly demand for the router is a normal random variable with a mean of 100 units and a...

Let's assume that you're thinking about buying stock in WestCoast Electronics. So far in your...

Let's assume that you're thinking about buying stock in West Coast Electronics. So far in your analysis, you've uncovered the following information: The stock pays annual dividends of $4.74 a share indefinitely. It trades at a P/E of 10.1 times earnings and has a beta of 1.14. In addition, you plan on using a risk-free rate of 4.00% in the CAPM, along with a market return of 11%. You would like to hold the stock for 3 years, at the...

It is important to note that we are assuming that so far there has been NO...

It is important to note that we are assuming that so far there has been NO governmental action regarding the virus. So, there has been no quarantining, there have been no “Stay-at-Home” orders, there have been no orders closing businesses, and, generally, there have been no decisions by a governmental entity regarding the virus.Draw a graph to explain your answer. First, explain (in words) what an “efficient” outcome is in the present context. Then, present an economic argument, using a...

Let's assume that you're thinking about buying stock in West Coast Electronics. So far in your...

Let's assume that you're thinking about buying stock in West Coast Electronics. So far in your analysis, you've uncovered the following information: The stock pays annual dividends of $5.21 a share indefinitely. It trades at a P/E of 8.6 times earnings and has a beta of 1.19. In addition, you plan on using a risk-free rate of 4.00% in the CAPM, along with a market return of 9%. You would like to hold the stock for 3 years, at the...

Let's look at a super conductor: so resistivity really is zero exactly, and some of our...

Let's look at a super conductor: so resistivity really is zero exactly, and some of our electrostatics assumptions about E=0 in a conductor and the charge is all on the surface really are true a) Show the magnetic field must be constant inside b) If you built a loop out of superconducting material, show that the magnetic flux through that loop must be constant c) Turns out B is not only constant in a super conductor, but zero. Why? Eddy...

4. One of the great science fiction movies so far this century was Alfonso Cuarón’s Children...

4. One of the great science fiction movies so far this century was Alfonso Cuarón’s Children of Men (2006), in which infertility threatens humanity with extinction. (a) P-element hybrid dysgenesis in the fruit fly Drosophila is a frightening illustration of a mechanism by which this might happen in an animal species. Do some background research on this phenomenon in order to explain its molecular basis. (b) Xenotransplantation has been suggested as a temporary solution of the problem of getting sufficient...

A checkbook balance sheet shows an initial balance for the month of $300.

A checkbook balance sheet shows an initial balance for the month of $300. During the month, checks were written in the amounts of $25, $82, $213, and $97. Deposits were made into the account in the amounts of $84 and $116. What was the balance at the end of the month?

What are most important lipids, carbohydrate, or protein? Which is most important for our health and...

What are most important lipids, carbohydrate, or protein? Which is most important for our health and why? Can we live a productive life if we drop lipids, carbohydrates, or protein from lives? Please be as detailed as possible. DON'T use older answers on chegg, because they are not accurate. If you going to write it, please be neat. Thank you!

18) A firm's balance sheet shows the following changes over the most recent quarter: Cash increases...

18) A firm's balance sheet shows the following changes over the most recent quarter: Cash increases by $1,000,000, long-term assets increase by $3,000,000, accounts payable increase by $750,000, long-term-debt increases by $1,000,000, retained earnings increase by $1,250,000, and new equity increases by $1,000,000. Which of the following statements must be TRUE? A) Cash was a $1,000,000 source of funds for the firm. B) Long-term debt was a $1,000,000 source of funds for the firm. C) Because retained earnings increased by...

Question