Also known as the balance sheet. This statement includes the amounts of the company's total assets, liabilities, and owner's equity which in totality provides the condition of the company on a specific date.

Statement of Financial Position

It is considered a corporation if it is:

An entity created by law owned by shareholders.

A duly registered association of persons with a common bond of interest, voluntarily joining together to achieve their social, economic and cultural needs.

Manufacturing business is a type of business which:

Buys raw materials and uses them in making a new product.

Buys at wholesale and later sells the products at retail.

Offers professional skills, advice and consultations.

Service business is a type of business which:

Offers professional skills, advice and consultations.

Buys at wholesale and later sells the products at retail.

Buys raw materials and uses them in making a new product.

Merchandising business is a type of business which:

Buys at wholesale and later sells the products at retail.

Buys raw materials and uses them in making a new product.

Offers professional skills, advice and consultations.

The Going Concern Principle implies that:

Business is expected to continue indefinitely.

A business enterprise is separate and distinct from its owner or investor.

Financial statements must be presented with supporting evidence.

The Business Entity Principle implies that:

A business enterprise is separate and distinct from its owner or investor.

Business is expected to continue indefinitely.

Financial statements must be presented with supporting evidence.

The Objectivity Principle implies that:

Financial statements must be presented with supporting evidence.

A business enterprise is separate and distinct from its owner or investor.

Business is expected to continue indefinitely.

The Conservatism Principle implies that:

In case of doubt, assets and income should not be overstated while liabilities and expenses should not be understated.

Cost should be matched with the revenue generated.

Revenue should be recognized when earned regardless of collection, expenses should be recognized when incurred regardless of payment.

The Accrual Accounting Principle implies that:

Revenue should be recognized when earned regardless of collection, expenses should be recognized when incurred regardless of payment.

Cost should be matched with the revenue generated.

In case of doubt, assets and income should not be overstated while liabilities and expenses should not be understated.

The Matching Principle implies that:

Cost should be matched with the revenue generated.

In case of doubt, assets and income should not be overstated while liabilities and expenses should not be understated.

Revenue should be recognized when earned regardless of collection, expenses should be recognized when incurred regardless of payment.

Preparing an unadjusted trial balance is:

The fourth step in the Accounting Cycle

The first step in the Accounting Cycle

The second step in the Accounting Cycle

The third step in the Accounting Cycle

Posting the transaction in the ledger is:

The third step in the Accounting Cycle

The first step in the Accounting Cycle

The second step in the Accounting Cycle

The fourth step in the Accounting Cycle

Recording the transaction in the ledger is:

The second step in the Accounting Cycle

The first step in the Accounting Cycle

The third step in the Accounting Cycle

The fourth step in the Accounting Cycle

Analyzing the transaction is:

The first step in the Accounting Cycle

The second step in the Accounting Cycle

The third step in the Accounting Cycle

The fourth step in the Accounting Cycle