Homwk Wk2 Week 2 Accounting Question Papers

ACCOUNTING HOMWRK WK2 CLA DISCUSSION Graded Activity: Class Discussion (25 points) | Instructional Objectives for this activity:
Describe the terms asset, liability, and owner’s equity account
Outline how the accounting equation is utilized | The relationship between three basic accounting elements – assets, liabilities, and owner’s equity – can be expressed in the form of a simple equation known as the accounting equation. Please respond to all of the following prompts in the class discussion section of your online course: * Choose two elements in the accounting equation and assume you have the information in those elements. How would you solve for the third element? What information does each element provide about the company?
| income statement | Reports the profitability of business operations for a specific period of time. | input | Business transactions provide the necessary input for the accounting information system. | liability | Something owed to another business entity. | liquidity | A measure of the ease with which an asset will be converted to cash. | net income | The excess of total revenues over total expenses for the period. | net loss | The excess of total expenses over total revenues for the period. | net worth | Another term for owner’s equity, the amount by which the business assets exceed the business liabilities. | notes payable | A formal written promise to pay a supplier or lender a specified sum of money at a definite future time. | operating statement | Another name for the income statement, which reports the profitability of business operations for a specific period of time. | output | The financial statements are the output of the accounting information system. | owner’s equity | The amount by which the business assets exceed the business liabilities. | processing | Recognizing the effect of transactions on the assets, liabilities, owner’s equity, revenues, and expenses of a business.