BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Statement of Cash Flows
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Statement of Comprehensive Income
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Statement of Changes in Owner’s Equity
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Notes to Financial Statement The ending capital computed in the Statement of Changes in Owner’s Equity is carried over to the Owner’s Capital line of the Statement of Financial Position.
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Detailed explanation-1: -Owner’s equity is recorded in the balance sheet at the end of an accounting period. It is obtained as the difference between the total assets and liabilities. Assets are shown on the left hand of the balance sheet while the liabilities and owners’ equity is placed on the right hand side of the balance sheet.
Detailed explanation-2: -A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholder equity. The balance sheet is one of the three core financial statements that are used to evaluate a business. It provides a snapshot of a company’s finances (what it owns and owes) as of the date of publication.
Detailed explanation-3: -The balance sheet shows what the company owns (assets such as cash, accounts receivable and equipment) and what the company owes (liabilities such as accounts payable and loans).
Detailed explanation-4: -Balance Sheets. A balance sheet provides detailed information about a company’s assets, liabilities and shareholders’ equity. Assets are things that a company owns that have value. This typically means they can either be sold or used by the company to make products or provide services that can be sold.
Detailed explanation-5: -The statement of owner’s equity-also called the statement of retained earnings-shows the change in retained earnings between the beginning and end of a period (e.g., a month or a year). The balance sheet reflects a company’s solvency and financial position.