Accounting Basics 2

What goes where to find what in an Income Statement?

b

c

d

e

a

Income or Revenue

Category headings for expenses

Less: Expenses heading

Title: who, what, when

Profit calculation (Income-Expenses)

Reorder the following

• Net Profit

• by taking expenses from

• Income Statements

• income earned.

• calculate a businesses

Total Income = $47,032 and
Total Expenses = $22,840
what is the Profit?

Mathematical Equivalence

OFF

Match the following

• Expense

• 
• Expense

• 
• Non-Current Asset

• 
• Income

• 
• Current Asset

• 

If we know the amount of Total Assets and the Owner's Equity; what can we find?

Total Assets = $2,480,225
Owner's Equity = $2,100,000
What are the liabilities?

Mathematical Equivalence

ON

A business that runs a Stationery and Arts Supplies firm would have what to sell?

• Inventory (stock on hand)

• Hair trimmers; other tools and equipment

• Motor vehicles

• Lawn mowers

A business that sells Audis, Mercedes, BMW, and other European type cars would have what to sell?
[choose only the best option]

• Inventory (stock on hand)

• Hair trimmers; other tools and equipment

• Motor vehicles

• Lawn mowers

A business that runs a Landscaping type business would have what assets to use to generate income?

• Inventory (stock on hand)

• Hair trimmers; other tools and equipment

• Motor vehicles

• Lawn mowers

BONUS POINTS: ___________ are taken away from ______ to get Owners' Equity amounts reported in the Statement of Financial Position?
[answer like: Word, Word]