Balance sheet:
Balance sheet is a financial statement that shows the available assets (owner’s equity and outsider’s equity) and owed liabilities from investing and financial activities of a company. This statement reveals the financial health of company. So, this statement is also called as
Income statement:
Income statement is a financial statement which reports revenues, and expenses from business operations, and the result of those operations as net income or net loss for a particular time period is referred to as income statement.
To identify: Whether each of the following account is either a balance sheet or an income statement, and to identify for each balance sheet account, whether it is an asset, a liability, owner’s equity, and for each income statement account, whether it is a revenue or an expense.
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Chapter 2 Solutions
Corporate Financial Accounting
- Under the column Financial Statement, choose from the list of codes below, the appropriate financial statement where the accounts listed would appear. Financial Statement Code Income Statement I/S Balance Sheet B/S Statement of Owner's Equity O/E b. For the column Balance Sheet Classification, choose the appropriate balance sheet classification from the list of codes below. If the account does not belong on the balance sheet, use the code n/a. Balance Sheet Classification Code Current Assets CA Long-term Investments LTI Property, Plant and Equipment PPE Intangibles I Goodwill G Current Liabilities CL Non-Current Liabilities NCL Owner's Equity OE Not on the Balance Sheet n/a a. b. Accounts in financial statement Financial Statement Balance Sheet Classification Accumulated depreciation – furniture Interest…arrow_forwardFINANCIAL STATEMENT ACCOUNTS Label each of the following accounts as an asset (A), liability (L), owners equity (OE), revenue (R), or expense (E). Indicate the financial statement on which the account belongsincome statement (IS), statement of owners equity (SOE), or balance sheet (BS)in a format similar to the following.arrow_forwardIdentify the financial statement on which each of the following accounts would appear: the income statement (IS), the retained earnings statement (RE), or the Balance Sheet (BS). A. Insurance Expense B. Accounts Receivable C. Office Supplies D. Sales Revenue E. Common Stock F. Notes Payablearrow_forward
- The cumulative balance of other comprehensive income is reported in (Enter 1, 2, 3, or 4 that represents the correct answer): statement of retained earnings income statement assets section of the balance sheet stockholders’ equity section of the balance sheetarrow_forwardWhere would 'accounts payable' most likely appear in a set of financial statements? In both the income statement and the balance sheet In the balance sheet under'current liabilities In the balance sheet under'non-current liabilities In the income statement before operating profitarrow_forwardFinancial statement account identification Mark each of the accounts listed in the following table as follows: a. In column (1), indicate in which statement-income statement (IS) or balance sheet (BS)-the account belongs. b. In column (2), indicate whether the account is a current asset (CA), current liability (CL), expense (E), fixed asset (FA), long-term debt (LTD), revenue (R), or stockholders' equity (SE). (Select from the drop-down menus.) Account Name Accounts payable (1) Statement (2) Type of Account Carrow_forward
- For each ofthe following accounts, identify whether that item is an asset, liability, or equity account.a. Bonds payableb. Equipmentc. Accounts payabled. Salaries payablee. Common stockf. Retained earningsg. Cashh. Accounts receivablei. Sales revenuej. Inventoryarrow_forwardThe retained earnings statement should be prepared a. before the income statement and balance sheet b. after the income statement and before the balance sheet C. before the income statement and after the balance sheet d. after the income statement and balance sheetarrow_forwardIn performing vertical analysis, we express each item in a financial statement as a percentage of a base amount. What base amount is commonly used for income statement accounts? For balance sheet accounts?arrow_forward
- 23. Given the following totals for the financial statement columns on the worksheet, determine the net income or loss for the period: Income Statement Balance Sheet Credit Debit Credit Debit P6,800 P9,500 P7,400 P4,700 a. P4,700 net income b. P2,700 net income C. P2,700 net loss d. P6,800 net loss 24. Given the following totals of the financial statements columns of the worksheet, determine the net income or loss for the period: Income Statement Balance Sheet Debit Credit P8,500 P6,750 P4,300 P6,050 Debit Credit a. P8,500 net loss b. P1,750 net income C. P4,300 net income d. P1,750 net lossarrow_forwardA scrambled list of accounts from the income statement and balance sheet of Belmond, Inc. is as follows: What is the retained earning?arrow_forwardListed below are eight technical accounting terms introduced in this chapter:Realization principle CreditTime period principle Accounting periodMatching principle ExpensesNet income Accounting cycleEach of the following statements may (or may not) describe one of these technical terms. Foreach statement, indicate the term described, or answer “None” if the statement does not correctlydescribe any of the terms.a. The span of time covered by an income statement.b. The sequence of accounting procedures used to record, classify, and summarize accountinginformation.c. The traditional accounting practice of resolving uncertainty by choosing the solution thatleads to the lowest amount of income being recognized.d. An increase in owners’ equity resulting from profitable operations.e. The underlying accounting principle that determines when revenue should be recorded in theaccounting records.f. The type of entry used to decrease an asset or increase a liability or owners’ equity account.g. The…arrow_forward
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