Income Statements
What account titles most commonly make up the revenue column?
Advertising Fees, Consulting Fees, ect.
What is a current liability?
A liability that is expected to be paid off within a year.
Do you get your starting capital number from your Income Statement or Worksheet?
Worksheet
Which column is used for numbers that are the final total? Left or right?
Right
Give five examples of expense accounts.
Wages, Rent, Supplies, Phone, Insurance, Depreciation, ect.
What is the difference between current assets and Property, Plant, and Equipment?
Current assets are things that are expected to be used within a year. Property, Plant, and Equipment last longer than a year.
Do you add or subtract your withdrawls from your net income/loss to help determine your increase or decrease of capital?
Subtract
On the Income Statement, how is the date written?
For month ended month day, year
When you are adding numbers into an income statement as an expense, what column will the numbers go into? Left or right?
Left
Do you add or subtract your Liabilities from your Owner's Equity on your balance sheet?
Add
How do you determine whether you have an increase or decrease in capital?
If the final capital number is positive it is an increase, if it is negative, it is a decrease.
How is the date on the Statement of Owner's Equity written?
For month ended month day, year
Explain how to come up with the net income or loss on the income statement?
Subtract your expenses from your revenue.
Do you gather the information that goes into the capital column from your worksheet, or your Statement of Owner's Equity?
Statement of Owners Equity
How do you determine your ending capital on the Statement of Owner's Equity?
Add or subtract your increase/decrease in capital from your starting capital.
How is the date written on the balance sheet?
Month Day, Year