17. BS – N AME OF B USINESS BS – N AME OF B USINESS D ETAILED SUMMARY OF THE ASSETS AND CLAIMS AGAINST THOSE ASSETS AT A PARTICULAR DATE. D ETAILED SUMMARY OF THE ASSETS AND CLAIMS AGAINST THOSE ASSETS AT A PARTICULAR DATE. F INANCIAL P OSITION ( ABILITY TO PAY DEBTS ) F INANCIAL P OSITION ( ABILITY TO PAY DEBTS ) G IVES THE READER A VIEW OF THE FIRMS FINANCIAL POSITION TO CARRY ON ITS BUSINESS OPERATIONS. G IVES THE READER A VIEW OF THE FIRMS FINANCIAL POSITION TO CARRY ON ITS BUSINESS OPERATIONS. S TRENGTH OF THE OWNER ’ S CLAIM AGAINST THE ASSETS. S TRENGTH OF THE OWNER ’ S CLAIM AGAINST THE ASSETS. A NY LIABILITY THAT IS REPORTED AS SECURED HAS ONE OR MORE ASSETS PLEDGED AS THE SECURITY A NY LIABILITY THAT IS REPORTED AS SECURED HAS ONE OR MORE ASSETS PLEDGED AS THE SECURITY E XAMPLE : E XAMPLE : T OTAL A SSETS $128 065 C REDITORS CLAIM - $24 000 19% J ANE ’ S C LAIM - $104 065 81% (J ANE /TA)

18. D OES NOT REPORT THE DETAILS OF THE PROFIT D OES NOT REPORT THE DETAILS OF THE PROFIT D OES NOT SHOW THE CLAIMS OF CREDITORS AND THE OWNER AGAINST SPECIFIC ASSETS ( EXCEPT FOR SECURITY ) D OES NOT SHOW THE CLAIMS OF CREDITORS AND THE OWNER AGAINST SPECIFIC ASSETS ( EXCEPT FOR SECURITY ) C APITAL IS NOT CASH ( IT IS INVESTMENT – USED UP ) C APITAL IS NOT CASH ( IT IS INVESTMENT – USED UP ) D OES NOT REPORT THE SO - CALLED MARKET VALUE, CURRENT VALUE OR WORTH OF THE BUSINESS. D OES NOT REPORT THE SO - CALLED MARKET VALUE, CURRENT VALUE OR WORTH OF THE BUSINESS. C OST P RINCIPLE C OST P RINCIPLE A CCOUNTING V ALUE VS M ARKET V ALUE A CCOUNTING V ALUE VS M ARKET V ALUE CICA/CPA H ANDBOOK CICA/CPA H ANDBOOK

19. EXPIRED COSTS ( COSTS USED UP ) E XPENSES – COSTS USED UP IN THE PROCESS OF MAKING REVENUE -W HEN THE COST OF ANY ASSET IS USED UP, THAT COST “ EXPIRED ” IS NO LONGER THERE. -E X : SALARIES EXPENSE / CASH – EXPIRED PORTION IS DEBIT ( EXPENSE )

20. P URCHASED I NSURANCE FOR 6 MONTHS WORTH $600 ON J ANUARY 1. P URCHASED I NSURANCE FOR 6 MONTHS WORTH $600 ON J ANUARY 1. T RANSACTION : T RANSACTION : P RE -P AID I NSURANCE 600 P RE -P AID I NSURANCE 600 C ASH 600 C ASH 600 T RANSACTION – S HOW THE DEBIT AND CREDIT FOR J UNE 30. T RANSACTION – S HOW THE DEBIT AND CREDIT FOR J UNE 30.