Ch1 hw acc203 - Mandatory chapter homework for financial accounting, acc 203, professor guerrasio PDF

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Mandatory chapter homework for financial accounting, acc 203, professor guerrasio...

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Professor Guerrasio ACC 203 26 January 2017 Chapter 1 Homework 12. What are the four primary financial statements? What basic information is shown on each?  The four primary financial statements are income statements, statements of stockholders’ equity, balance sheets, and statements of cash flow. The income statement is a financial statement that reports the company’s revenues and expenses over an interval of time. The statement of stockholders’ equity is a financial statement that summarizes the changes in stockholders’ equity over an interval of time. The balance sheet is a financial statement that presents the financial position of the company on a particular day. The statement of cash flow is a financial statement that measures activities involving cash receipts and cash payments over an interval of time. 13. What does it mean to say that the income statement, statement of stockholders’ equity, and statement of cash flows measure activity over an interval of time, but the balance sheets measures activity at a point in time?  Income statements, statements of stockholders’ equity, and statements of cash flow show the collective financial records for a period of time for example the week, month, year, and so on. Balance sheets show the financial records for one specific day. 15. What is the accounting equation? Which financial statement reports the accounting equation?  The accounting equation is: Assets = Liabilities + Stockholders’ Equity. The financial statement of stockholders’ equity reports the accounting equation....