the-balance-sheet-lists-which-of-the-following-a-assets-liabilities-and-owners-equity-b-revenues-exp

Question

The balance sheet lists which of the following?
A. assets, liabilities, and owners’ equity
B. revenues, expenses, gains, and losses
C. assets, liabilities, and investments by owners
D. revenues, expenses, gains, and distributions to owners

Puneet Prajapati · Accepted Answer

Okay, so let&#x27;s understand the current solution. So first of all, people understand veto. But in sheet ordered by back vividly drives former Okay, to understand the or good idea Main solution. OK, so it is the it refers to the stick mend off. Financial was issue. We&#x27;ll be here by an entity at the end off each year. Okay, so what we have, Okay, it is a statement of financial position. So it is the most in Bordentown in their definition. Okay, It is prepared by every entity like the introduced average for profit motive or and do the established for non profit motive, like for charity purposes. So the those types of entity also prepare financially balance sheet. Okay. And that I&#x27;m not easier now. What is watches? Meaning the end of each of means. Like first. Generally who? 2020 Who? 31st December 2020. Okay, No. Now we have industrial that. What is the balance sheet? No legs. Doors for mitt. Okay, get that clear. Idea that Lord, the question is asking about us. Okay, So, balance sheet. But the actual vomit is that 31st December. That would okay, so legs don&#x27;t right cross Let&#x27;s, like 2020 or we can see 2019 because we have not been like that. I dont drink tea yet, so I&#x27;m currently drawing the traditional form it off balance sheet. Please do not be confused with that. Okay, but make sure that you remember that items. Okay? Okay. You make sure you remember the item as well s the summation part. And what? However, the submission parties in order living dead. The summation part is nothing. And show you first. Make sure that you do. You remember the terms a sex owner&#x27;s equity and liabilities. Okay, The summation part is just that this torture will always be equal. Do this total. Otherwise the balance sheet per patient is not correct. Okay, this is all the summation part talks about. And as far as dictums organs concern the s exile, mostly the cash balance. Headed into the level are the machinery which is used in producing the products. Okay, so these will be considered as a sex owners. Equity means that how much capital the owner has invested in the company to run the business or who started business. The liabilities are the amount which we have, which the entity has to pay to some craters or depositors or from whom the advance has been taken. OK, so that those amounts will be considered as liabilities. So we have. You can have a bill into definition water by that B. M. Gorondi. We employ the former balance sheet. Now we&#x27;ve been Now we have been ivy. Correct choice for a problem. Okay, So what is ever correct choice? It&#x27;s a okay vision, Klores, Or like them stated in the second Chief. Except Okay, so that&#x27;s all for our solution. Thank you.

Puneet Prajapati · Answer

because let&#x27;s understand the current solution. Okay, So what is it becomes taken? We will understand it. So we will write a small technical definition. It&#x27;s really give you the order. Idea that. What is the income state? Okay. Ordered by that we will draw X form It also it is this tape repaired by an entity who but says the off the port operations. Okay, so what? We have Britain, the evident we will understand it. It is a statement, okay. Repaired by an entity. Okay. To assess the profitability off core operations. Okay, so you will take example also a little example to understand it clearly, let&#x27;s suppose a company, a company. It&#x27;s not at all companies a complete a complete dealing in. But I need yet it appears income statement you&#x27;ll find perfect or loss 40 Got India. Okay, so that is what the income statement. So Okay. Ignat reminds the profit or loss off the business entity for a particular petered in that particular Peter. Well, most of the times will be veneer. Okay, Like from 1st January 2020 to 31st. December 2020. Okay, now let&#x27;s come toe. So this is our definition and this is another example. Please write it down on your books so that you can revising at a later point in time. Sorry. So legs draw the format of income statement. Okay, so, you know, uh, go on common form it comprising a few items which have bean given in the ocean on. Okay, so first of all, it will be revenue. Okay, Expenses. So that will be throw or operation. What operations means from the operations or from the activities in for which the business entity has bean established initially. Okay, So from this sale of goods or services, the amount has been collected. Vee vill did of the expenses incurred make the sale. Okay, So what we will get either we will again. Okay. Either we will make gains or losses. That is very clear. I that this item could people all right, that this item could be more so based on that, we will get our profit or maybe ever lost. So you can see the negative one will always be in brackets. So please, no down this apartment as well as technical definition. So from the from other income statement definition and form it, we have derived other choice. So the correct choice for problem is what this A Okay, which include all items. We have stated it in cheap number two. Ok, that&#x27;s all part of a solution. Thank you.

Puneet Prajapati · Answer

So let&#x27;s understand the current solution. Okay? First, we will understand the meaning off owners. Okay. So I would make it more simply when? This day. Okay, victory for us holding capital that has bean and Mr By on that in the business. Who then day to day operations. Okay. And also owner stick Woody, they Ingres, if they will be more than whispered. Perfect. Okay, the venues. Now, it is very clear to you that court I have return here most of all it to first to capital. Okay, that has been in Mr There has been administered by, you know, in the business. Okay, during they day operations like owner&#x27;s equity, it&#x27;s difficult for us to the capital that has been in Mr Boehner in the business to run day to day operations on business. Okay, it is just a typical a moment that will that will be in district by by the older of the business who is willing to start the business. Okay. However, this amount will change. Oh, no. Maybe because it here do your business most prominently by that. So the owner&#x27;s equity change If there is, if they will be more than Miss Smith, Or we can say whenever the owners things, that is, that is our investment should be liquidated or desired from the business. So the owners equity change also, So they will be degrees and increasing the owner&#x27;s equity based on the items we have listed here like invest bearing, brawl fades, revenues. Okay, if these items will increase the owners in critical injuries if these I don&#x27;t really degrees the owners equitable degrees. Okay, so that is right. Let&#x27;s support the owner of business. Makes a profit for the car. India. So it is. It will be very on this that the profit will be only too good attributable to order. Okay, because he is darkest of this business. Okay, so that is why the owner&#x27;s equity abilities in case the revenue increases. There are also other secret increases by that. So because an increasing revenue will also imply an increasing profits. So there is a likewise increase in orders equity, engage them and Miss Mildew likes night. I suppose owner has been a big lottery. Okay, let&#x27;s say $100,000. So he is also looking for lucrative opportunities to raise funds. But now he has one the your big ticket. Now what will you do with them out that has been going by him? Hey, will invest doctor mom in police business enhanced or seek Otisville increase. Okay, because, I mean, they&#x27;re spending the business. I know what s portion is just that Each of the following is not which of the following choice will not in Jesus orders equity. So accusation off estates by incurring liabilities will not in breezy in case the what? Who is the owner&#x27;s equity? Okay, so because what happens when you will exchange the asset for Philip, you will get the assets. However, when you will anger the libraries also, so you will have more elaborate is on your balance sheet. Okay, Please make understand that for that insert, it&#x27;s on nothing but the recovery will most recovered. Ebola moans from the customers And what that celebrities just table hopes That&#x27;s all is off now. Please make a little effort. Okay? We will understand. Eluded that didn&#x27;t last problems know what happens whenever they will be exchange of us exporting during our liberties so it wouldn&#x27;t know it will never impact. It would never have any impact on the and That is why the correct choice is exchange up. I said spot including clarity&#x27;s. Okay, So correct choices. Okay, so that&#x27;s all forever. Solution. Thank you.

Puneet Prajapati · Answer

because let&#x27;s start of a solution. Okay? So before understanding them main solution of the problem, they will understand the accounting accretion. Okay. Sorry what the accounting equation says. Okay, so what is it about in question? A six. Minus liabilities. Ik wisdom Older. Okay, this is what our accounting question sees. No. What is the meaning of accounting? Question. We will understand it. Let&#x27;s suppose you have, ah, business off selling foods and beverages to your customers. Okay, Now what happens? One of your customers frequently buys food and beverages from you and says that I will pay you a terrible regulator. So what will happen? Do you have a receivable against that food and various that has been sold sold to that customer? Okay, Now, let&#x27;s suppose you have sold $300. Okay? $3000 off force and beverages to person over a period of a month or over a period of 23 months. Okay, whatever. But a sex are those amount which are recoverable former customers. Okay. With John recoverable from your customers. Know what happens due process or to make that saleable products to your customer, you first have to buy raw materials from your from your suppliers. Okay, so you have purchased raw materials from your supplier. But what happened? You have not paid them. You also you want to say that I will pay You did that. I will be you. So that it is, uh, being leaders and receiving leaders. That mostly happens in every type of witness. Okay, He won in the case off services industry. Also, manufacturing industry. Also, this happens most of the times. So however, you have purchased raw material off $2000 and you as not you have not beat them. Okay? Know what happens? Do you have I was owners equity. Okay, we have on other owners. Equity of $1000. My $1000. Just a few 1000 minus 2000. They get $1000. Okay, so we haven&#x27;t district a meaning off $3000. We have understood the meaning of $2000. These are recoverable from customers. And these are people to supply us. What? What is the meaning of owners Equity? The meaning of winners equity is after being off all the liabilities from the amount of sex. Okay? After their collection, after the election off recoverable amounts from customer. And after paying off the liabilities we have generated that basically what I usually saved, they could be from business. It&#x27;s that big of a war for the owner of the business. OK, so this is the amount that one every take away from the business. So we have understood the meaning of Essex, the camp English in next come the autumn in solution. So we have a set minus liabilities equals stool, or is he know what happens in mathematics? Did you have in this room that whenever you will make are you will pass on this item level? It is item onto right inside of the equation. What will happen? It will become like this. Okay. Owner&#x27;s equity. Vai there. So by that minus and has been removed because it has been move right inside of the question. Okay. Is that clear? So this is our main solution to our portion and the choice, The choice of the present, this equation you very well know this. Okay, So the current choices be which says that which says that a SEC equals two liabilities plus owners equity. So the main solution of it for other problem is choice the Okay, That&#x27;s all part of a solution. Thank you.

Puneet Prajapati · Answer

Okay, So let us understand the current solution, But before moving to the institution vigilance and understand the concept off religious statements. And how do we teach to the occupation of financial statements? Okay, let&#x27;s suppose we have Ah, business off. Setting radio gives. Okay. Okay. This is over business. OK, so whenever be sell, you begin to customer. Or more specifically, Children. What happens? It consists off to evens be sell video games to the beatings. Okay. The parents of the Children and the parents give us money back against the video gives. So they&#x27;re supposed to be up financial drawn. The chip often. Angel religion is a plan in action. Victor. Ricin Villas exchange off money against the goods and services. Okay. It is very, very well industry. Okay, now what happens in the business? There is a cities of transactions. Let&#x27;s suppose 100. Okay, So what happens? Who to get a clear idea that how many transactions has the the entity has entered with other entities or other persons? Okay, we need to record or those transactions. Okay. After that, we get a detailed summary that war type off transactions happened with veg entities. How much the amounts. How much the amounts of the transaction happened with entity And, like, Vice. Okay, that comes from the posting. So posting provides it. They&#x27;re detail. Somebody off transactions happened with them. Entity. Okay. And an entity or different types of amputees. After posting, we have some organization. Now at this immunization process. What happens? This dictated details. Memorization becomes very brief in this process, and this is done to trial ballots. You can know this diagram on your notebooks also. Okay. No. After moving to brief brief civilization, they Then finally, it comes to the financial statements. There be prepared balance sheet. First of all, we do not prepared Ben, and she&#x27;d be prepared Income statement then moved to balance sheet, then moved to statement of cash flows. Okay. And like rice, So this is the process. Okay. This is also loan as accounting cycle. This process is known as a camping cycle. The process off accounting in any type of organisation. Okay, So we have a business of video games and the process to record the transaction. Italy and off probation, orphanages, statements. A potion has Oz. Says what? Which of the falling is not included in the ban. Interesting. So for the information financial stake names will include First of all, it will include income statement. What is income statement? What is well in sheet? We will discuss Ben. We will face the problems allergic to sit concepts. And then you just take a note off it for the for the current solution. OK, then we prepare the balance sheet, okay? And it last beep. Very cash. Mr. Yes, Mr. Okay, that&#x27;s clear. So the potion disasters. Which of the following is not included in financial stickers? So the correct answer we can die from the from from about explanation we have made so far that make choices The statement off owner investments. Okay, that statement is not included in financial statements, so you can know down. So she&#x27;d one she toe on the in orders for back a revision. However Indian, we have a conclusion uncertain as correct choice says the Okay, that&#x27;s all for another solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current solution to win something. But first of all, before the example, we draw the first of all, understand the actually question behind this solution and works it. What is it? Let&#x27;s see. Sits minus liabilities. Equal. Get it? Actually, capital is used in traditional needs as a loan in relation, sophisticated. But just to quit, you stop already. Our date is Oh, precise differences. They have presides differences between stockholder&#x27;s equity and capital. However, we will understand. Listen later when we will face the problems. Okay, so we have our question said minus liability was to stop really pretty no electricity. Understand this equation, Tau Example. Because the visit will be a little complex at getting states to understand this. No, let&#x27;s see. Mr Green has business off blue business off and currently it has. It&#x27;s it&#x27;s oh, dollars I did and liabilities off. Daughter 200 through there licked Lewis. So what do we have? We have Mr Ri, which is dealing in business off clothing, like chasing the flutes from locally from Lydia are outside of the country importing, you know, a good material. Some outside of the country, local boundaries and selling the setting, the builds and about my beating. In such business, Mr Lee has a community sets off about 500. These events will be in terms off gash. Know what is in a second? That&#x27;s it is in a mountain which a person or an entity is likely to the sea. Our is expecting to receive in some later point in time. So a sex could be gash, which is which is guaranteed with the current, which the entity it&#x27;s currently holding in its bank guard in, you know, cash reserves or doctors. It is that the person who would like you to pay the person for whom subject is that considered as sex. So presently, Now, what are the liabilities? Lab, please. Uh, those are mom&#x27;s, which we have to be. Who? Other person. Like participles. We have predators or shock them. Decked Logan Back short, Longtime necked. These are other financial obligations which B which we have to pay off during the lifetime of the business. I love What? The accounting. A question in place. Let&#x27;s understand this. Also, a sick Linus like beauties equally do stock no water. What is the amount of dissecting never take something. What is the example of liabilities? 100. Now, what is this? Top of very pretty hours. So we have understood the meaning. Love This one, This one? No, we really understand the meaning of this. And after that, we will come to the conclusion that how many type off combinations we can produce with this question, So that will be able to go on. Push. So what is this top of that? It would be It is. It is the amount there, the business man whores in the business as is, huh? Only money was realization depends upon liquidation. Liquidation? Oh, business having bean there done such definition. It is simply the amount that deck mystery that Mr Three Wars in the business as his own darts a simple list. Thank you, Mr V. As a community of equity, wealth equally means on his own. Mr. Ray has a commuter belt off dollars. 300 in his business. After being off the liabilities from the A community, a sense and what it would be the insects. But maybe gash dictators, order receivers or what type of bank deposits he had so out after the bingo after thing off celebrities. Dollars. 200 from the assets. Whatever be the long left? After such activation off of the exits, whatever will be left will be actually beautiful to Mr as a business. And this will be start hold equity. So no. So the correct solution. So the correct choice. So the correct choice off off problem 13 is deep. Howdy. Because, Indy, this is I send less liabilities equal to stock up. It took it. So this is about the Actually, this is the actual question is that&#x27;s it minus liabilities? Because just talk it is. And from this a question. We cannot be right this equation in anything so that this white this option is not today and that this does not represent the actual impression. So the current choice a problem dirtiness. And thanks for the

Problem

Assume a company has a $350 credit (not cash) sal…

Problem 4 Easy Difficulty

The balance sheet lists which of the following?
A. assets, liabilities, and owners’ equity
B. revenues, expenses, gains, and losses
C. assets, liabilities, and investments by owners
D. revenues, expenses, gains, and distributions to owners

Answer

Related Courses

Principles of Accounting Volume 1: Financial Accounting

Related Topics

Discussion

Top Educators

Recommended Videos

Watch More Solved Questions in Chapter 2

Video Transcript

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

What do you need help with?

Textbooks

Ask a question

Courses

AI Tutor

Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting