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What is the total amount of assets reported on the balance sheet?
What is the total amount of assets reported on the balance sheet?
What was the total amount of operating expenses for Overnight Auto Service?
What was the total amount of operating expenses for Overnight Auto Service?
What is the net income reported on the income statement for the period of January 20-31, 2015?
What is the net income reported on the income statement for the period of January 20-31, 2015?
Which of the following represents the total liabilities listed in the balance sheet?
Which of the following represents the total liabilities listed in the balance sheet?
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What components contribute to owners' equity in the balance sheet?
What components contribute to owners' equity in the balance sheet?
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What is the total amount of assets listed on the balance sheet as of January 26, 2015?
What is the total amount of assets listed on the balance sheet as of January 26, 2015?
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What was the amount of cash on hand for Overnight Auto Service after the partial payment on January 27, 2015?
What was the amount of cash on hand for Overnight Auto Service after the partial payment on January 27, 2015?
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How much is the total liabilities for Overnight Auto Service on January 31, 2015?
How much is the total liabilities for Overnight Auto Service on January 31, 2015?
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What was the value of retained earnings for Overnight Auto Service on January 31, 2015?
What was the value of retained earnings for Overnight Auto Service on January 31, 2015?
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Which of the following amounts was recorded for auto repair services provided on January 31, 2015?
Which of the following amounts was recorded for auto repair services provided on January 31, 2015?
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What was the total amount paid by Overnight Auto Service for operating expenses on January 31, 2015?
What was the total amount paid by Overnight Auto Service for operating expenses on January 31, 2015?
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What change occurred to the accounts payable after the partial payment on January 27, 2015?
What change occurred to the accounts payable after the partial payment on January 27, 2015?
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What was the impact on cash as a result of the operating expenses paid on January 31, 2015?
What was the impact on cash as a result of the operating expenses paid on January 31, 2015?
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What type of ownership equity is reported for a sole proprietorship?
What type of ownership equity is reported for a sole proprietorship?
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Which financial statement summarizes revenue and expenses over a specific period?
Which financial statement summarizes revenue and expenses over a specific period?
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What component is included in the owners' equity section for a corporation?
What component is included in the owners' equity section for a corporation?
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What does the balance sheet describe?
What does the balance sheet describe?
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Which of the following is NOT a primary financial statement?
Which of the following is NOT a primary financial statement?
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How is total stockholders' equity represented in a corporation’s financials?
How is total stockholders' equity represented in a corporation’s financials?
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What does the statement of cash flows depict?
What does the statement of cash flows depict?
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Which ownership type lists capital for each partner in its equity section?
Which ownership type lists capital for each partner in its equity section?
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What is the total net cash provided by operating activities?
What is the total net cash provided by operating activities?
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What amount was the cash used in investing activities?
What amount was the cash used in investing activities?
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What was the cash balance at the end of the period, January 31, 2015?
What was the cash balance at the end of the period, January 31, 2015?
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How much cash was received from the sale of tools?
How much cash was received from the sale of tools?
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Which activity resulted in an increase of cash due to financing?
Which activity resulted in an increase of cash due to financing?
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What was the net cash flow over the entire period?
What was the net cash flow over the entire period?
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Which of the following activities is NOT part of investing activities?
Which of the following activities is NOT part of investing activities?
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What is the total amount spent on purchasing land, building, and tools?
What is the total amount spent on purchasing land, building, and tools?
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What is the total amount of cash on the Balance Sheet for Overnight Auto Service as of January 31, 2015?
What is the total amount of cash on the Balance Sheet for Overnight Auto Service as of January 31, 2015?
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Which line item represents the total liabilities on the Balance Sheet?
Which line item represents the total liabilities on the Balance Sheet?
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What was the net cash provided by operating activities during the period?
What was the net cash provided by operating activities during the period?
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Which of the following is not included in the Assets section of the Balance Sheet?
Which of the following is not included in the Assets section of the Balance Sheet?
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What was the total cash flows from investing activities?
What was the total cash flows from investing activities?
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What is the total amount of owners' equity displayed on the Balance Sheet?
What is the total amount of owners' equity displayed on the Balance Sheet?
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What items contributed to the cash flows from financing activities?
What items contributed to the cash flows from financing activities?
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What is the increase in cash for the period reported?
What is the increase in cash for the period reported?
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Which of the following components makes up total assets?
Which of the following components makes up total assets?
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In the Income Statement, what was the total amount of operating expenses?
In the Income Statement, what was the total amount of operating expenses?
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Which activity resulted in cash outflows of the largest magnitude?
Which activity resulted in cash outflows of the largest magnitude?
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What was the total investment in land and buildings combined?
What was the total investment in land and buildings combined?
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What does the retained earnings amount to as of January 31, 2015?
What does the retained earnings amount to as of January 31, 2015?
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Which equation correctly summarizes the relationship among Assets, Liabilities, and Owners' Equity?
Which equation correctly summarizes the relationship among Assets, Liabilities, and Owners' Equity?
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Study Notes
### Forms of Business Organization
- Sole proprietorships, partnerships, and corporations are forms of business organization.
Reporting Ownership Equity in the Statement of Financial Position
- Ownership equity is reported differently in the statement of financial position depending on the form of organization.
- Sole proprietorships report owner's equity as "Owner's equity".
- Partnerships report owner's equity as "Partners' equity" and show individual partners' capital accounts.
- Corporations report ownership equity as "Stockholders' equity" and include accounts for "Capital Stock" and "Retained Earnings".
Introduction to Financial Statements
- There are three primary financial statements: the Balance Sheet, the Income Statement, and the Statement of Cash Flows.
- The Balance Sheet describes the financial position of the enterprise at a specific date.
- The Income Statement depicts the revenue and expenses for a specific period of time.
- The Statement of Cash Flows depicts the ways cash has changed during a specific period of time.
Overnight Auto Service Balance Sheet
- As of January 26, 2015, Overnight Auto Service had total assets of 123,800andtotalliabilitiesandowner′sequityof123,800 and total liabilities and owner's equity of 123,800andtotalliabilitiesandowner′sequityof123,800.
- On January 27, 2015, Overnight made a partial payment of 6,800onitsaccountspayable,whichreducedtotalliabilitiesandowner′sequityto6,800 on its accounts payable, which reduced total liabilities and owner's equity to 6,800onitsaccountspayable,whichreducedtotalliabilitiesandowner′sequityto117,000.
- On January 31, 2015, Overnight recorded 2,200inrevenuereceivedincash,increasingtotalassetsandowner′sequityto2,200 in revenue received in cash, increasing total assets and owner's equity to 2,200inrevenuereceivedincash,increasingtotalassetsandowner′sequityto119,200.
- On January 31, 2015, Overnight paid 1,400incashoperatingexpenses,whichdecreasedtotalassetsandowner′sequityto1,400 in cash operating expenses, which decreased total assets and owner's equity to 1,400incashoperatingexpenses,whichdecreasedtotalassetsandowner′sequityto117,800.
Overnight Auto Service Income Statement and Statement of Cash Flows
- The Income Statement for Overnight Auto Service for January 20-31, 2015, shows a net income of $800.
- The Statement of Cash Flows for Overnight Auto Service for January 20-31, 2015, shows a net increase in cash of $16,600.
- The Statement of Cash Flows is divided into three categories: operating activities, investing activities, and financing activities.
Relationships Among Financial Statements
- The Balance Sheet, Income Statement, and Statement of Cash Flows are interconnected.
- The Balance Sheet shows the financial position of the company at a specific point in time.
- The Income Statement shows the company's revenues and expenses for a specific period of time.
- The Statement of Cash Flows shows the company's cash inflows and outflows for a specific period of time.
Financial Statement Articulation
- The Balance Sheet, Income Statement, and Statement of Cash Flows are linked together.
- Changes in cash flows from operating activities are reflected in the net income on the Income Statement, and net income is reflected in retained earnings on the Balance Sheet.
- The Income Statement is used for preparing the Statement of Cash Flows.
- Investors and creditors use financial statements together to make informed decisions about an organization.
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Description
Explore the different forms of business organization, including sole proprietorships, partnerships, and corporations. Understand how ownership equity is reported in financial statements such as the Balance Sheet, Income Statement, and Statement of Cash Flows.
