Equations

Question 1

Accounting Equation

Answer 1

Assets = Liabilities + Equity

Question 2

Expanded Accounting Equation for a non corporation

Answer 2

Equity = Owner’s capital − Owner’s withdrawals + Revenues − Expenses.

Question 3

Expanded Accounting Equation for a corporation

Answer 3

Equity = Contributed capital + Retained earnings + Revenues − Expenses − Dividends.

Question 4

Income Statement

Answer 4

Revenue-expenses=net income

Question 5

Statement of Owner’s Equity

Answer 5

Beginning capital + owner investments + Net income - withdrawals=ending capital

Question 6

Balance sheet

Answer 6

Assets= Liabilities + Equity

Question 7

Statement of cash flows

Answer 7

+- operating cash flow
+- investing cash flow
+/-financing cash flow