Given an activity and have to decide if it is investing finance or operating Given two...

Given an activity and have to decide if it is investing finance or operating
Given two accounts and have to determine what account are they (liability, asset, or expense)
You’re asked a question about the timing of the dates on the financial statements

A: income statement for period of time while, balance sheet is for point in time. Statement of cash is for a period of time

Accounting equation is what the balance right you are asked about
Ask about a classified balance sheet (specific current liabilities)
Generally accepted accounting principals
Given a transaction and given a journal entry
Left side of an account is
The description of a normal balance (what does that mean)
Another general entry about revenue

Answer the ones you can

Solutions

Expert Solution

Given an activity and have to decide if it is investing finance or operating

Activity
Sale purchase of long term investment	Investing
Payment to Creditor	Operating
Sale /purchase of Plant and machinery	Investing
Issue or redemption of bond	Financing
Issue of share	Financig
Receipts from debtor	operating
Notes receivable	Investing
Long term notes payable	Financing
Sale /purchase of inventory	Operating

Ask about a classified balance sheet (specific current liabilities

Current Liabilities

Accounts payable	xxxx
Rent payaple	xxxx
Un earned revenue	xxxx
Notes payable	xxxx
Interest payable	xxxx
Current portion of long term loan	xxxx

Given a transaction and given a journal entry

Transaction Sale of goods amounting $50000 out of which 30% on credit

	Debit	Credit

Cash (50000 x 70% or 50000-15000)	35000
Accounts receivable (50000x 30%)	15000
Sales		50000

Left side of an account is

Left side of account is debit

Particular(debit)	Amount	Particular	Account(credit)

Another general entry about revenue

Cash	xxx
Revenue earned		xxx
(being revenue received in cash)

Accounts receivable	xxx
Deferred Revenue		xxx
(accruing revenue)

ekkarill92 answered 1 year ago

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