1. Specify the procedure of accounting.
Accounting is the procedure of placing. measurement and pass oning economic information about an organisation for the intent of doing determinations and informed judgements.
2. What are the three major divisions in the accounting field? Financial. managerial and cost accounting
3. What is the Cardinal Accounting Equation?
Assetss = Liabilitiess + Equity
4. What is the intent of a balance sheet? What are some illustrations of typical balance sheet histories? A balance sheet is a sum-up of fiscal balances of an organisations assets. liabilities and equity listed on a specific day of the month such as the terminal of twelvemonth study. A balance sheet is a snap shooting of the company’s fiscal position
5. What is the intent of an income statement? What are some illustrations of typical income statement histories? An income statement is besides known as net income and loss statement is one of the fiscal statements of a company and shows grosss and disbursals during a peculiar period. An income statement indicates how the grosss are transformed into net income
6. What is the intent of a statement of hard currency flows? What are some illustrations of typical statement of hard currency flow histories? A hard currency flow statement consists of three parts ; runing. investment and funding. It is the sum-up of minutess that affected hard currency in a peculiar period. In other words. it si a sum-up of all the hard currency payments and the hard currency grosss that occurred during a month. one-fourth or twelvemonth for a concern.
7. Based on the fiscal information below. fix an income statement and a balance sheet for Joe’s-Fly-by-Night Oil company for the twelvemonth ended December 31. 2012. Unless otherwise indicated. presume all information below is either for the twelvemonth 2012 or as of December 31. 2012.