Chapter 1 Accounting in Business

An ____________describes a company's revenues and expenses and computes net income or loss over a period of time.

A _____________ explains changes in retained earnings from net income(or loss) and any dividends over a period of time.

A ________________ describes a company's financial position (types and amounts of assets, liabilities, and equity) at a point in time.

A ____________
identifies cash flows(receipts) and cash outflows (payments) over a period of time.

Using the numbers 1-4 indicate the order in which the financial statements must be prepared in.

Indicate in which financial statement each item would most likely appear: Income statement, Balance Sheet, or Statement of Cash Flows.

a. Assets

b. Cash from operating activities

c. Equipment

d. Expenses

e. Liabilities

f. Net decrease (or increase) in cash

g. Revenues

h. Total liabilities and equity

Answer explanation

a. Balance sheet

b. Statement of cash flows

c. Balance Sheet

d. income statement

e. Balance Sheet

f. Statement of Cash flows

g. Income statement

h. Balance sheet

Select all that classified as Assets

• Land

• Wages Payable

• Equipment

• Accounts receivable

• Accounts Payable

On December 31, Hawkin's records show the following accounts. Use this information to prepare a December income statement for Hawkin.