Homework Answers
question 1.
The formula of the balance sheet is called the accounting
equation.
It is: total assets= total liabilities+ total equity.
The 3 accounts it contains are:
1. Assets account
2. liabilities account
3. equity and reserves account
Question 2.
Liquidity tells how easy or difficult it is to buy or sell an
asset in the market.
The more liquid the asset is, the easier it is to buy or sell. In
other words, how is easy it is to convert an asset to cash.
Generally in a balance sheet assets are arranged from high liquidity to low liquidity.
That is the first current assets like cash are presented and then non- current assets like land and building are presented.
(Note: the presentation is different from country to country depending upon the accounting standards they are following. The above one is for the USA.
IN CASE OF INDIA: Generally, in a balance sheet assets are arranged from low liquidity to high liquidity. )
Add Answer to:
What do we call the formula for the balance sheet? What three accounts does it include?...
Assets Cash CULLUMBER COMPANY Balance Sheet December 31, 2020 Liabilities $21,036 Accounts payable 11,219 Accounts receivable...
Assets Cash CULLUMBER COMPANY Balance Sheet December 31, 2020 Liabilities $21,036 Accounts payable 11,219 Accounts receivable 64,510 Owner's capital 18,231 Total liabilities and owner's equity $114,996 Supplies Equipment Owner's drawings Total assets $29,450 (9,116) 94,662 $114,996 Prepare a correct balance sheet. (List Assets in order of liquidity.) CULLUMBER COMPANY Balance Sheet Assets Liabilities and Owner's Equity
Are higher assets and liabilities better on the balance sheet or lower. And what does it...
Are higher assets and liabilities better on the balance sheet or lower. And what does it mean if the assets and liabilities on the balance sheet of a commercial banks begin to decrease?
Blossom Company has collected the following information related to its December 31, 2022, balance sheet. Accounts...
Blossom Company has collected the following information related to its December 31, 2022, balance sheet. Accounts receivable Accumulated depreciation equipment Cash $19,000 45,900 12,500 1,800 Equipment Inventory Supplies Goodwill $177,500 64,500 6,500 4,600 Stock investments (long-term) Prepare the assets section of Blossom Company's balance sheet. (List Current Assets in order of liquidity) BLOSSOM COMPANY Balance Sheet (partial) Assets $ I < >
1. What does a firm’s liquidity measure? Why do investors analyze liquidity? How does liquidity relate...
1. What does a firm’s liquidity measure? Why do investors analyze liquidity? How does liquidity relate to risk? 2. What does a firm’s solvency measure? Why is a high level of debt relative to equity considered riskier? 3. How do firms report assets on the balance sheet under IFRS?
Manufacturing company balance sheet Instructions Labels and Accounts Balance Sheet Instructions Partial balance sheet data for...
Manufacturing company balance sheet Instructions Labels and Accounts Balance Sheet Instructions Partial balance sheet data for Diesel Additives Company at August 31 are as follows: Finished goods inventory $43,750 28,000 Prepaid insurance Accounts receivable 104,500 Work in process inventory 158,750 Supplies 71,200 Materials inventory 87,500 116,000 Cash Prepare the Current Assets section of Diesel Additives Company's balance sheet at August 31. Refer to the Labels and Accounts list provided for the exact wording of the answer choices for text entries....
What formula do you use in excel to convert a consolidated balance sheet into a common...
What formula do you use in excel to convert a
consolidated balance sheet into a common size balance sheet.
Formatting . Table Styles . Styles Filter Select Clipboard Font Alignment Cells Editing B38 Consolidated Balance Sheet (In Millions, Except Par Value) 2012 Common Size Balance Sheet 1 December 28, 2013; December 29, 2012; and December 31, 2011 2-1 (in Millions, Except Par Value) 3 Assets 4 Current assets: 5 Cash and cash equivalents 6 Short-term investments 7 Trading assets 8Accounts...
Does (Not completed developments cost ) in the balance sheet? Does(payments received on accounts) in the balance sheet?
Does (Not completed developments cost ) in the balance sheet? Does(payments received on accounts) in the balance sheet?
Prepare a 2017 balance sheet for Jarrow Corp. based on the following information: cash = $146,000;...
Prepare a 2017 balance sheet for Jarrow Corp. based on the
following information: cash = $146,000; patents and copyrights =
$630,000; accounts payable = $222,500; accounts receivable =
$165,000; tangible net fixed assets = $1,665,000; inventory =
$302,500; notes payable = $135,000; accumulated retained earnings =
$1,240,000; long-term debt = $864,000. (Do not round
intermediate calculations. Be sure to list the accounts in order of
their liquidity.)
Prepare a 2017 balance sheet for Jarrow Corp. based on the following...
The bookkeeper for Nash Company has prepared the following balance sheet as of July 31, 2020....
The bookkeeper for Nash Company has prepared the following balance sheet as of July 31, 2020. Cash Accounts receivable (net) Inventory Equipment (net) Patents NASH COMPANY BALANCE SHEET AS OF JULY 31, 2020 $ 70,190 Notes and accounts payable 41,690 Long-term liabilities 61,190 Stockholders' equity 84,000 21,000 $278,070 $45,190 76,190 156,690 $278,070 The following additional information is provided. 1. Cash includes $1,200 in a petty cash fund and $11,890 in a bond sinking fund. 2. The net accounts receivable balance...
Wildhorse Corporation has the following accounts included in its December 31, 2020, trial balance: Accounts Receivabie...
Wildhorse Corporation has the following accounts included in its December 31, 2020, trial balance: Accounts Receivabie $119,500, Inventory $296,000, Allowance for Doubtful Accounts $9,100, Patents $81,800, Prepaid Insurance $9,820, Accounts Payable $83,100, and Cash $35,800 Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.) WILDHORSE CORPORATION Balance Sheet (Partial) December 31, 2020 Current Assets Cash $ Accounts Recelvable Less Allowance for Doubtful Accounts Inventory Prepaid Insurance Total Current Assets $ eTextbook and Media...
Assets Cash CULLUMBER COMPANY Balance Sheet December 31, 2020 Liabilities $21,036 Accounts payable 11,219 Accounts receivable 64,510 Owner's capital 18,231 Total liabilities and owner's equity $114,996 Supplies Equipment Owner's drawings Total assets $29,450 (9,116) 94,662 $114,996 Prepare a correct balance sheet. (List Assets in order of liquidity.) CULLUMBER COMPANY Balance Sheet Assets Liabilities and Owner's Equity
Blossom Company has collected the following information related to its December 31, 2022, balance sheet. Accounts receivable Accumulated depreciation equipment Cash $19,000 45,900 12,500 1,800 Equipment Inventory Supplies Goodwill $177,500 64,500 6,500 4,600 Stock investments (long-term) Prepare the assets section of Blossom Company's balance sheet. (List Current Assets in order of liquidity) BLOSSOM COMPANY Balance Sheet (partial) Assets $ I < >
Manufacturing company balance sheet Instructions Labels and Accounts Balance Sheet Instructions Partial balance sheet data for Diesel Additives Company at August 31 are as follows: Finished goods inventory $43,750 28,000 Prepaid insurance Accounts receivable 104,500 Work in process inventory 158,750 Supplies 71,200 Materials inventory 87,500 116,000 Cash Prepare the Current Assets section of Diesel Additives Company's balance sheet at August 31. Refer to the Labels and Accounts list provided for the exact wording of the answer choices for text entries....
What formula do you use in excel to convert a
consolidated balance sheet into a common size balance sheet.
Formatting . Table Styles . Styles Filter Select Clipboard Font Alignment Cells Editing B38 Consolidated Balance Sheet (In Millions, Except Par Value) 2012 Common Size Balance Sheet 1 December 28, 2013; December 29, 2012; and December 31, 2011 2-1 (in Millions, Except Par Value) 3 Assets 4 Current assets: 5 Cash and cash equivalents 6 Short-term investments 7 Trading assets 8Accounts...
Prepare a 2017 balance sheet for Jarrow Corp. based on the
following information: cash = $146,000; patents and copyrights =
$630,000; accounts payable = $222,500; accounts receivable =
$165,000; tangible net fixed assets = $1,665,000; inventory =
$302,500; notes payable = $135,000; accumulated retained earnings =
$1,240,000; long-term debt = $864,000. (Do not round
intermediate calculations. Be sure to list the accounts in order of
their liquidity.)
Prepare a 2017 balance sheet for Jarrow Corp. based on the following...
The bookkeeper for Nash Company has prepared the following balance sheet as of July 31, 2020. Cash Accounts receivable (net) Inventory Equipment (net) Patents NASH COMPANY BALANCE SHEET AS OF JULY 31, 2020 $ 70,190 Notes and accounts payable 41,690 Long-term liabilities 61,190 Stockholders' equity 84,000 21,000 $278,070 $45,190 76,190 156,690 $278,070 The following additional information is provided. 1. Cash includes $1,200 in a petty cash fund and $11,890 in a bond sinking fund. 2. The net accounts receivable balance...
Wildhorse Corporation has the following accounts included in its December 31, 2020, trial balance: Accounts Receivabie $119,500, Inventory $296,000, Allowance for Doubtful Accounts $9,100, Patents $81,800, Prepaid Insurance $9,820, Accounts Payable $83,100, and Cash $35,800 Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.) WILDHORSE CORPORATION Balance Sheet (Partial) December 31, 2020 Current Assets Cash $ Accounts Recelvable Less Allowance for Doubtful Accounts Inventory Prepaid Insurance Total Current Assets $ eTextbook and Media...
Most questions answered within 3 hours.
-
Your division head has assigned another important project to you
and your team. This project is...
asked 1 minute ago -
Under normal use conditions, the Mean Time To Failure of a
heating coil can be modeled...
asked 1 hour ago -
Consider the probability that fewer than 34 out of 116 CDs will
be defective. Assume the...
asked 16 minutes ago -
4J Manufacturing Company uses a job order cost accounting system
and keeps perpetual inventory records. Prepare...
asked 5 minutes ago -
Please write code in C++
using recursive function
Write a program that computes the sequence of...
asked 4 minutes ago -
What is 345 as an unsigned decimal number? It is 34
with subscript of 5. Not...
asked 20 minutes ago -
I've been struggling with these homework questions. Any help
would be greatly appreciated
1. For the...
asked 18 minutes ago -
Read the In-Depth Integrative Case 1.2 (Pharmaceutical
Companies, Intellectual Property, and the Global AIDS Epidemic) in...
asked 17 minutes ago -
Consider a mass-spring system. The spring has a spring constant
of 2.27e+3 N/m. On the end...
asked 23 minutes ago -
People are most likely to believe their ancestors play an active
role in their lives in...
asked 1 hour ago -
A student holds a ruler by one end (x=0 where the student holds
it). The student...
asked 1 hour ago -
A 3.1-kΩ and a 2.2-kΩ resistor are connected in parallel; this
combination is connected in series...
asked 28 minutes ago