Files

1)Management
Explanation:
Management is the internal user.
2) Balance sheet
Explanation:
Balance sheet is only financial statement will show the company assets and liability and capital at any particular period.
3)Footnotes to the financial statements.
It is one of the information presented in GAAP.
4)Intangible asset
Intangible asset is part of the company’s total assets which does not have physical shape, company can felt this kind of assets.
5) Bonds payable.
Normally bonds will issue for a long period.
6) Liquidity:
The company pay its obligation through liquidating assets to get cash to pay the due within the next year.
7) The information system that identifies, records and communicate the economic events of the organization.
Modern accounting stated to identified , record the economics events of the organization.
8) Assets = Liabilities + stock holder’s equity
9) Resources belonging to a company that have future benefit for the company.
Assets are owned by the company to avail future benefit.
10) $3,000
Working capital =Cu
ent assets –Cu
ent liabilities
=$7,000 - $4,000
=$3,000    
11) $1.20
Earnings per share = Net income - preference dividends / Weighted average common shares outstanding
$12,000 – 0 / 10,000
=$1.2    
12) 1:8:1
Existing cu
ent assets =$1250,000
New cu
ent assets = $1,250,000+$100,000( New stock issued for cash, then cash will increased the cu
ent assets)
Cu
ent ratio = cu
ent assets /cu
ent liabilities
=$1350,000 / $750,000
=1:8:1    
13) Reliability
Accounting information should be reliable for its users.
14) Dividend account.
It has normal debit balance. Because common stock, revenue and liability all are having normal credit balance.
15) Is increased by credits
A revenue account has normal credit balance.
16) $29400
Liabilities, common stock and revenues have credit balance.
Accounts payable =$2800
Notes payable =$4,200
Common stock =$1400
Revenue =$21,000
Total credits $29,400    
17) $80,000 credit.
Retained earnings has normal credit balance
Ending retained earnings formula = Opening balance -net loss – dividends
$80,000=$130,000-$30,000-$20,000
18)$15,000 credit balance
Account payable is a liability and has normal credit balance.
Ending accounts payable = Opening accounts payable + credit purchase – payments
$15,000=$30,000+ $25,000- $40,000
19) A trial balance
Trial balance is a accounting report to check arithmetical accuracy of all ledger accounts and confirms debit and credit balance are equal.
20) Dividends
Dividends would be listed before t he others in a chart of account.
21) A payment of $148 to a creditor was posted as a debit to accounts payable and a debit of $148 to cash.
Each transaction need to effect the two accounts and two side but this transaction effect only one side effect and no accounts was credited.
22) If they are paid after they are incu
ed.
According to accrual accounting, expense incu
ed first then it will be paid.
23)If earned by the last day of the reporting period even if payment has not been received.
Using accrual accounting, revenue is recognized when company perform its task and collect the revenue later.
24) $6000
Only cash involved transactions will record under cash basis accounting.
Net income = Revenue received – Expense paid
$6000 = $11,000 - $5,000
25) $6750
No cash transaction will be involved under accrual basis of accounting.
Net income = Revenue earned - expenses incu
ed
$6750=$14,000-$7250
26) Revenue.
Under cash basis of accounting, cash received from the customer considered as revenue.
27)Expense will be understated.
If expense amount not recorded then total expense will be understated ...