Chapter 3 The Balance Sheet and Financial Disclosures Questions for Review of Key Topics Question 3-1 The purpose of the balance sheet‚ also known as the statement of financial position‚ is to present the financial position of the company on a particular date. Unlike the income statement‚ which is a change statement that reports events occurring during a period of time‚ the balance sheet is a statement that presents an organized array of assets‚ liabilities
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Current assets: 6230-3910=2320 Current liabilities: 6230-39102320-640=1680 Total liabilities: 1680+4180=5860 2. Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net new equity is $500. The tax rate is 35 percent. Sales are $15‚900 and depreciation is $680. What are the earnings before interest and taxes? Net Income: 75+418=493 75+418493/ (1-0.35) =758 Earnings before interest and taxes= 758.46+511= 1269 3. Winston Industries
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operates on a fiscal year‚ which ends September 30. Following is the post-closing trial balance as of September 30: [pic] .:. Additional information: 1. The balance of the materials account represents the following: [pic] .:. The company uses the FIFO method of accounting for all inventories. Material A is used in the stamping department‚ and materials B and C are used in the plating department. 2. The balance of the work in process account represents the following costs that are applicable to
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Interview a Business Owner Due: January 7‚ 2009 For my interview I decided to pick the owner of the company I work for. The owner’s name is J. Kent McNew and he is the owner of Eastern Petroleum Corporation. The company is a petroleum distributor of gasoline primarily through gas station outlets. Eastern Petroleum Corporation is a Maryland corporation and its corporate office is located in Annapolis‚ MD. Mr. McNew sells products in MD‚ VA‚ DC‚ and some in DE. The scope of the business is done in
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as assets‚ liabilities‚ or owners’ equity is known as what? 4. What journal is used to record both the account(s) to be debited and the account(s) to be credited? 5. A collection of specific asset‚ liability and owners’ equity accounts in known as what? 6. What type of entry is made to adjust the accounts for internal events prior to preparing financial statements? 7. What type of entry is made to close out a temporary account and transfer the balance to retained earnings? 8
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of changes in the tax code. Will this?a. Decrease net cash from operations on the cash flow statementb. Increase net cash from operations on the cash flow statementc. Just impact the balance sheet.d. Have no impact on the net cash from operations as depreciation appears in both cash flow and income statementAnswer | Selected Answer: | C. Just impact the balance sheet. | Correct Answer: | B. Increase net cash from operations on the cash flow statement | Response Feedback:
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How to Learn To Be a Successful Small Business Owner I think if Eric were to tell me how to open and run a successful Business he would start by telling me to know exactly what kind of business it is I would want to open. Then that I should do research meet other business owners and talk with them about the different ways to run the business. I also think Eric would tell me that I might want to find a job working for a business that I could one day own. This would not only help me by gaining
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ENTERPRISES 1. Title of the business: KAMERAWORLD Type of business: PHOTO SERVICES Business Owner: MRS. MARIA ALBA Years of operation: 2YEARS (25 YEARS AS KODAK) 2. Title of the business: MANDING’S FRUIT STAND Type of business: MERCHANDISE Business Owner: MR. ARMANDO LASAP Years of operation: 6 YEARS 3. Title of the business: KING LOUIE SCHOOL & OFFICE SUPPLIES Type of business: Business Owner: MR. STEPHEN GO Years of operation: 20 YEARS 4. Title of the business: JPL MARIO ELECTRONICS
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economic value is considered an asset. Simply stated‚ assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset).The balance sheet of a firm records the monetary value of the assets owned by the firm. It is money and other valuables belonging to an individual or business. Two major asset classes are tangible assets and intangible assets. Tangible assets contain various subclasses‚ including current assets and fixed assets. Current assets include
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Balance Sheets A general ledger is the foundation of a company’s financial records‚ as they constitute the central summary of a company’s financial system. Every transaction is recorded through the general ledger. These records remain as a permanent track of the history of all financial transactions since the opening day of the company (Business Town‚ n.d.). The purpose of any business is to increase the owner’s equity through solid revenues. These revenues increase assets or proceed to decrease
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