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A balance sheet has 4 sections. They are:
Heading, Assets, Liabilities, and Owner’s Equity
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The owner’s capital amount reported on a balance sheet is calculated as:
For a Net Income: Beginning Capital + Net Income – Drawing For a Net Loss: Beginning Capital – Net Loss - Drawing
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The formula for calculating net income is:
Total Revenue Minus Total Expenses
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The net income calculated for the income statement and the net income on the work sheet must be
The Same
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The _______ _______accounting concept is applied when financial statements contain all information necessary to understand a business’s financial condition. Adequate Disclosure
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The amount matches the Net Income/Net Loss on the Worksheet.
On an Income Statement, double lines are ruled across both amount columns to indicate ___? The amount matches the Net Income/Net Loss on the Worksheet.
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For a service business, the ______ reported on an Income Statement includes components for total expenses and net income. Revenue
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Total Expenses Divided by Total Sales
The formula for calculating the total expenses component percentage is ____? Total Expenses Divided by Total Sales
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The financial condition of a business refers to its financial ______.
Strength
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The owner’s equity section of a balance sheet may report different kinds of details about _____ _____. Depending on the need of the business. Owner’s Equity
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Divide the amount of each component by the total amount of sales.
Component percentages on an Income Statement are calculated by ________________? Divide the amount of each component by the total amount of sales.
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A component percentage is the ______ relationship between one financial statement item and the total that includes that item. Percentage
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An Income Statement reports information over a period of time, indicating the financial progress of a business in earning a ______ or ______. Net Income or Net Loss
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The Matching Expense with Revenue accounting concept is applied when the _____ earned and the expenses incurred to earn that revenue are reported in the same fiscal period. Revenue
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Information needed to prepare an Income Statement comes from the _______ columns of a worksheet.
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An amount written in parentheses on a financial statement indicates a/an ________.
Net Loss
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A _____ _____ reports financial information for a specific date and includes the assets, liabilities, and owner’s equity. Balance Sheet
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When a business has two different sources of revenue, do you complete one or two Income Statements?
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The date on a monthly Income Statement prepared on July 13 is written as `
For Month Ended July 13, 2011
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The Net Income or Net Loss on the Worksheet.
The amount of Net Income calculated on the Income Statement should equal ______? The Net Income or Net Loss on the Worksheet.
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Accounting Period Cycle
Preparing financial statements at the end of each monthly fiscal period is an application of the accounting concept _____. Accounting Period Cycle
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Information needed to prepare an Income Statement’s Revenue section is obtained from a worksheet’s Income Statement _____ column. Credit
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A balance sheet reports a business’s financial condition on a _____ date.
Specific
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Net Income divided by Total Sales.
The formula for calculating the net income component percentage is ________. Net Income divided by Total Sales.
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Balance Sheet Credit Column
Information needed to prepare the balance sheets liabilities section is obtained from a worksheet’s Balance Sheet ______ column. Balance Sheet Credit Column
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Assuring the financial statements contain all information necessary to understand a business’s financial condition is an application of the accounting concept ___________. Adequate Disclosure
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You will also have to prepare an Income Statement and Balance Sheet
You will also have to prepare an Income Statement and Balance Sheet. A partial worksheet will be provided. Remember, capital on balance sheet is not taken form worksheet—YOU MUST CALCULATE THE AMOUNT.
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