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SOVA2 [1]
3 years ago
10

The result of the accounting process is several financial statements. The income statement, the balance sheet, and the statement

of cash flows are the best known examples of financial statements. Place the statements about the financial situation of a company in the chart based on the type of financial statement and the profitability of the company.
Financial statements are provided to stockholders and potential investors in a firm's annual report as well as to other relevant outsiders such as creditors, government agencies, and the Internal Revenue Service. It is important to recognize that not all financial statements follow precisely the same format. The fact that different organizations generate income in different ways suggest that when it comes to financial statements, one size definitely does not fit all.
Read each statement when it appears and place the activity in the correct box in the chart on the right
Profitable company Unprofitable company
Bottom line in surplus Financially healthy
Inward flow of cash Financially failing Balance sheet
Statement of cash flow Outward flow of cash Bottom line in deficit
Business
1 answer:
Volgvan3 years ago
3 0

Answer: Please refer to Explanation

Explanation:

<u>Income Statement </u>

Profitable Company - <em>Bottom line in surplus</em>

Unprofitable Company - <em>Bottom line in Deficit</em>

The Bottomline in the Income statement refers to the Net Profit after all adjustments and deductions have been made. This is the figure that is taken to Retained Earnings and therefore funds the business. If the Bottomline is in Deficit that means the company made a loss and by definition are Unprofitable. The reverse is true.

<u>Balance Sheet</u>

Profitable Company - <em>Financially healthy</em>.

Unprofitable Company - <em>Financially failing</em>.

The Balance Sheet shows the health of a company by checking it's assets vs it's Liabilities and Equity. If it is shown for instance that there is too much debt in the company or that Current Liabilities are more than Current Assets, this shows that the company is not healthy and this is usually a symptom of an Unprofitable company. However a balance sheet showing strong Net Assets and a good Debt - Equity balance is considered healthy and is related to a Profitable Company.

<u>Statement of Cashflow.</u>

Profitable Company - <em>Inward flow of cash</em>

Unprofitable Company - <em>Outward flow of Cash</em>

The Statement of Cashflow (SCF) shows the actual amount of cash that a company has and spends. Other statements can include amounts for which cash has not been paid yet due to the Accrual system in Accounting. The SCF only deals with cash. A Profitable Company will have more cash coming in than going out because it would mean they are making profits as well as being in a strong financial position.

An Unprofitable Company on the other hand will show more cash leaving than coming in. This Outward flow of cash will signify that the company is spending more than it gets which is the sign of unprofitability.

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Blossom Corporation was organized on January 1, 2019. During its first year, the corporation issued 2,050 shares of $50 par valu
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Answer:

December 31, 2021

Debit : Dividends $28,500

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The Dividends declared present a present obligation by the entity to its shareholders.

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2 years ago
A store puts everything on sale for 20% off. If the sales tax is 8%, what percent of the original marked price is the final cost
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Answer:

86.4%

Explanation:

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The primary policy tool used by the fed to meet its monetary policy goals is.
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The primary tool used by the Fed to achieve monetary policy goals is <u>Open Market Operations.</u>

<h3>What are Open Market Operations (OMO)?</h3>
  • This refers to the trading of securities by the fed.
  • Securities traded include bills, notes, and bonds.

When the fed wants to increase the money supply, they will buy these securities from the public. If it is a decrease they they seek, they will sell securities to the public.

In conclusion, this is Open Market Operations.

Find out more about Open Market Operations at brainly.com/question/14256204.

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which of the following entries records the adjustment for revenue earned, but not yet collected? multiple choice debit accounts
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various options Debit receivables from customers, credit sales. Accounts Receivable is debited and Sales Revenue is credited. Sales revenue is debited and deferred revenue is credit. Debit receivables and credit deferred revenue are the two balances.

<h3> What are debit and credit?</h3>

An accounting entry that decreases an asset or cost account is known as a debit. or reduces an equity or liability account. In an accounting entry, it is placed on the left. An accounting item known as a credit raises a liability or equity account's balance. or lowers an account for an asset or expense.

The money that is placed into your checking account is a credit to the bank even if it is a debit to you (an increase in your asset) because it is not their money. It is your money, and the bank owes it to you, so it is a liability on their books. A credit is an increase in a liability account.

Explain debit and credit with an example:

Debit what comes in, credit what leaves, first. Second, credit all gains and revenue while debiting all expenses. Thirdly, debit the sender and credit the recipient.

<h3>Can you credit revenue and debit accounts receivable?</h3>

An accounts receivable transaction in journal entry form debits accounts receivable and credits a revenue account. Credit accounts receivable (to eliminate the receivable) and debit cash (to show that you have been paid) when your customer pays their invoice.

Debit or Credit Account: As a business owner, your equity grows as a result of your revenue. Revenues must be reported as credits rather than debits because your equity typically has a credit balance.

Revenue from sales is it an accounts receivable?

When a business sells anything, it reports the revenue from the transaction on its income statement. They list the amount owed as accounts receivable on their balance sheet if the consumer hasn't yet paid them for the purchase. The amount indicated on the income statement is offset by accounts receivable.

To know more about Debit or Credit , visit:

brainly.com/question/12269231

#SPJ4

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