Question
Complete the accounting equation for Business Solutions using the amounts in this format: $______ = $_______...
- Complete the accounting equation for Business Solutions using the amounts in this format: $______ = $_______ + $_____________
- In discussing Business Solutions latest financial statements, you as the manager say that it is the “the net income results on the bottom line” that really count. What do you mean? Which financial statement are you referring to? Are the results reflected on your financial statement satisfactory? Explain your answer.
- Does Business Solutions have enough cash to pay its liabilities? Please list the amounts and the overage amount or shortfall. Does Business Solutions need to improve this situation? If not, please describe what they are doing correctly, if so, please describe how they may improve.
Answers
Solution
1
the accounting equation = Asset= capital+ liabilities
the accounting equation for Business Solutions using the amounts in this format: $ 88227 = $ 83169+ $ 5040
2.
It is the “the net income results on the bottom line” that really count.When welook at a company's income statement, the bottom line is usually labeled "net income", although it is also referred to as net profit or net earnings. Net income is the amount remaining after all costs and taxes are subtracted from the gross sales a business generates during a year or other accounting period. Net income is crucial when it comes to measuring how profitable a business is during a given period of time.
3.
we are referring to the Income statement. The most important financial statement for the majority of users is likely to be the income statement, since it reveals the ability of a business to generate a profit. Also, the information listed on the income statement is mostly in relatively current dollars, and so represents a reasonable degree of accuracy
4.
The results reflected on your financial statement satisfactory due to the following
Total revenue: 42169
(-)Total expenses: 17000
(-) Dividend :7000
Total Profit: 18169