Week 1 Assignment

Chapter 1

1. Name the four financial statements

Income Statement, Retained Earnings Statement, Balance Sheet, Statement of Cash Flow

2. What order are the financial statements calculated?

1) Income Statement, 2) Retained Earnings, 3) Balance Sheet, 4) Cash Flows

3. Name the balance sheet equation

Assets = Liabilities + Owner’s Equity

4. Name three types of businesses

Service Business, Merchandising Business, Manufacturing Business

5. Bottom line is also known as _____

Net Income, Earnings, Net Profit, Net Loss, Cheddar

Chapter 2

1. Name the left and right side of a T account

Debit (left) & Credit (right)

2. How are assets listed on the balance sheet?

Assets (and liabilities) are listed in terms of liquidity

3. State a good net income %

Greater than or equal to 10% is a good net income

4. What is a good term to collect accounts receivable?

30 days (Net 30) is generally considered a good collection period

5. Revenue is also known as _____

Sales or Fees Earned