These summarize the changes resulting from business transactions that have occurred during an accounting period.
What are financial statements?
100
This is the financial statement that reports the final balances in all asset, liability, and owner's equity accounts at the end of the accounting period.
What is the balance sheet?
100
This involves the comparison of two amounts on a financial statement and the evaluation of the relationship between these amounts
What is ratio analysis?
100
The information needed to prepare the income statement comes from here.
What is the Income Statement section of the worksheet?
100
This is what is shown on the Balance sheet.
What are the balances in all asset, liability, and capital accounts at the end of the accounting period?
200
In this format, the classifications of balance sheet accounts are shown one under the other.
What is report form?
200
This financial statement reports a business' net income or net loss over an entire accounting period.
What is the income statement?
200
This ratio examines the portion of each sales dollar that represents profit.
What is return on sales?
200
These accounts are listed on the income statement?
What are revenue and expenses?
200
This is how the date line of the Balance sheet should read.
What is "Last day of accounting period."
300
This is a revenue account representing the sale of merchandise.
What is Sales?
300
This financial statement is completed as a supporting document for the balance sheet and shows the changes in the capital account from the beginning of the accounting period to the end.
What is the statement of changes in owner's equity?
300
This ratio evaluates the relationship between current assets and current liabilities.
What is the current ratio?
300
The date line for the income statement should say this.
What is "For the (period) ended (last day of the period)"?
300
These are the two locations where you get the information from for the Balance Sheet.
What is the Balance Sheet section of the worksheet?
400
These are assets that are used up or converted to cash during the normal operating cycle of the business.
What are current assets?
400
Information needed to prepare the income statement comes from here.
What is the Income Statement section of the worksheet?
400
This ratio is a measure of the relationship between short-term assets and current liabilities.
What is the quick ratio?
400
This is calculated after revenue and expeses are recorded.
What is net income or net loss?
400
This is where you get the amount for capital for the balance sheet.
What is the ending capital from the statement of changes in owner's equity?
500
These are the debts of the business that must be paid within the next accounting period.
What are current liabilities?
500
Information needed to prepare the balance sheet comes from these two locations.
What are the balance sheet section of the worksheet and the ending capital amount from the statement of changes in owner's equity?
500
This is the category of ratios that measure the ability of a business to pay its current debts as they become due and to provide for unexpected needs of cash.
What are liquidity ratios?
500
This occurs if total revenue is greater than total expenses.
What is net income?
500
This is how you check for the equality of the Balance sheet.
What is you compare the assets to the total of liabilities and owner's equity?