income statement and balance sheet practice questions with solutions

Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. 138 lessons Liabilities are an element of the balance sheet along with assets and owner's/stockholders' equity. The service was billed at the agreed upon amount of $3,500. In January ABC received the $4,000 from Kay. Statement of financial position is another name of balance sheet Components of Balance Sheet 1. Given below are important MCQs on Balance Sheet to analyse your understanding of the topic. The corporation's fair value is often significantly different than the stated amounts for the assets reported on the balance sheet. (However, expenses do cause a decrease in owner's/stockholders' equity on the balance sheet. Earn Transferable Credit & Get your Degree, Create your account to access this entire worksheet, A Premium account gives you access to all lesson, practice exams, quizzes & worksheets. Prior to January 2, ABC has a commitment but will not have a liability. Balance Sheet, Income Statement - Practice Questions. Regardless of the display format used, the accumulated other comprehensive income of $90,000 is reported in the stockholders equity section of the balance sheet. Current liabilities 5. What is the amount of ABC's owner's equity? Questions to Ask About Balance Sheet and Income Statement Page 2 of 3. Balance Sheet, Income Statement - Practice Questions. The statement of operations is another name for the income statement. Up Next. In January ABC will debit Cash, since cash was received. Choose your answers to the questions and click 'Next' to see the next set of questions. They are often positioned between the liabilities and owner's/stockholders' equity. © copyright 2003-2020 Study.com. Which of the following is a category or element of the balance sheet? 26. (As it is earned, it moves from the balance sheet to the income statement as revenue.) ABC's balance sheet of December 31 will show a liability of. Copyright © 2020 AccountingCoach, LLC. Quiz 48: Financial Statements Quiz flashcard sets, {{courseNav.course.topics.length}} chapters | Table 2.3 shows a sample statement of cash fl ows. Practice Questions - Multiple Choice Identify the choice that best completes the statement or answers the question. Practice: Interpreting the Income Statement. To be a current liability a note payable must be due within one year of the balance sheet date (or within the operating cycle if the operating cycle is longer than one year). Income Statement and Balance Sheet Overview. Balance sheet is prepared as of certain date, i.e., at the end of fiscal period 3. Expenses are an element of the income statement. The income statement is also referred to as a profit and loss statement. Which of the following is a contra account? What is the other effect on the balance sheet? Rarely, would the net of those amounts be any indication of the fair market value of those assets. What is the normal balance for an asset account? The balance sheet is derived using the accounting equation. The third line of the balance sheet at the end of the year should begin with "For the Year Ended". The example we received was this. The net income or net loss is used to update the balance sheet’s capital amount: Capital Beginning of the Year - Net Loss (or + Net Income) = Total Capital. 2. Bank reconciliations d. Purchase of stocks and bonds, ____ 12. Stockholders' equity is equal to the reported amounts of assets minus the reported amounts of liabilities. The total of all the cash accounts on the Balance Sheet (Petty Cash, Cash Multi-Step Income Statement & Classified Balance Sheet Help! The book value of a corporation is the total amount of stockholders' equity reported on the balance sheet. As a member, you'll also get unlimited access to over 83,000 lessons in math, This quiz and worksheet employ the following skills: For further study on balance sheets, review the accompanying lesson called The Balance Sheet: Purpose, Components & Format. Practice questions Use the following information to answer […] View Test Prep - Practice questions #2-solution from BCOM 3950 at Georgia State University. Deferred credits appear with the liabilities. ABC Co. has current assets of $50,000 and total assets of $150,000. Doing the example with accounts payable growing. He is the sole author of all the materials on AccountingCoach.com. If you have difficulty answering the following questions, learn more about this topic by reading our Balance Sheet (Explanation). Click here to learn more. Notes Payable cannot appear as a current asset. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. Use this quiz/worksheet combo to test your understanding of balance sheets in accounting practices. It is likely that the fair value of the assets is different from the cost less depreciation shown on the balance sheet. Taxes other than income tax 1.640 Wages and salaries 117.400 Work performed by other companies 187 REQUIRED: 4) Calculate the net turnover. All rights reserved. flashcard set{{course.flashcardSetCoun > 1 ? - Purpose, Components & Format, The Purpose of Notes on Financial Statements, Preparing the Basic Income Statement and Statement of Retained Earnings, How to Prepare the Basic Balance Sheet and Statement of Cash Flows, Adjusting Accounts and Preparing Financial Statements, Merchandising Operations and Inventory in Accounting, Completing the Operating Cycle in Accounting, Current and Long-Term Liabilities in Accounting, Reporting & Analyzing Equity in Accounting, Financial Statement Analysis in Accounting, Working Scholars® Bringing Tuition-Free College to the Community, Where assets, liabilities and owner's equity are reported, The term referring to things that you own, Identify some examples of liabilities and assets, Understand how to use the balance sheet equation. This offer is not available to existing subscribers. Balance Sheet MCQs. Basic cash flow statement. Accounting for the receipt of the $100 is likely to result in a. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. The effect of this entry on the balance sheet of ABC is to increase assets by $3,500 and to. However, the readers of the December 31 balance sheet and the 2012 income statement should be informed through a disclosure that something significant has occurred to the company's financial position since December 31. Sciences, Culinary Arts and Personal The balance sheet is also referred to as the statement of financial position or the statement of financial condition. Chapter 4-40. The balance sheet heading should NOT state a period of time. While the income statement and the balance sheet are accrual basis statements, the statement of cash flows is a cash basis statement—noncash items are omitted. Owner's/Stockholders' equity will decrease—keeping the accounting equation and the balance sheet in balance. [ 1 Answers ] Hi I'm new in studying accounting. "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. The receipt of $4,000 is not revenue, it is a collection of an account receivable. Gross margin. Balance sheet and income statement relationship. Which of the following is an asset account? Specific Identification c. LIFO 2. 1.Profitiability ratios measure the amount of operating income or net income an organization is able to generate relative to its assets, owner's equity, and sales. Sales – cost of sales. The balance sheet, together with the income statement and the statement of changes in equity, forms part of the financial statements of a business. Our mission is to provide a free, world-class education to anyone, anywhere. ... Balance sheet and income statement relationship. You are already subscribed. The balance sheet and the income statement are two of the three major financial … Owner's/stockholders' accounts normally have credit balances. The total of stockholders' equity is equal to the amounts listed on the balance sheet for assets minus the amounts listed on the balance sheet for liabilities. Chapter 2 Accounting Review: Income Statements and Balance Sheets 2.1 Chapter Overview 2.2 The Income Statement 2.3 The Balance Sheet 2.4 The Importance of Accounting for Business Operations After studying Chapter 2, you should be able to: • Construct a basic income statement. What is the normal balance for contra asset accounts? Practice: Interpreting the Income Statement. By examining a sample balance sheet and income statement, small businesses can better understand the relationship between the two reports. Become familiar with these formulas, and use them as you practice … The following example questions ask you to calculate a company’s total liabilities and total equity on a given day. Want more practice questions?Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO. Click here to learn more. This is the currently selected item. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. b. And just like these previous two statements (income statement and statement of changes in equity), the balance sheet is usually drawn up annually. Preparing the Basic Income Statement and Statement of Retained Earnings 6:48 How to Prepare the Basic Balance Sheet and Statement of Cash Flows 11:00 English, science, history, and more. 10.Net Assets Net worth of organization; similar to personal net worth. Example 1: Preparation of Balance Sheet – Horizontal and Vertical Style: The following trial balance is prepared after preparation of income statement for F. Green as at 31 March 2015.. In January ABC is collecting an account receivable. All rights reserved.AccountingCoach® is a registered trademark. Breaking Bad Company received $100 from a customer for goods that were sold to that customer on account during the previous month. Questions to Ask About Balance Sheet and Income Statement Page 1 of 3. Comprehensive Income Balance Sheet Presentation. The balance sheet reports a company’s assets, liabilities, and equity as of a specific date. - Definition, Purpose & Importance, What Is an Income Statement? ABC follows the accrual basis of accounting. A decrease in total assets b. The Income Statement totals the debits and credits to determine Net Income Before Taxes.The Income Statement can be run at any time during the fiscal year to show a company's profitability. ABC Co. follows the accrual basis of accounting and performs a service on account (on credit) in December. | {{course.flashcardSetCount}} In December ABC will debit Cash for $1,000. It is either a current liability or a long-term liability. The supplier's invoice states that the $500 is due by January 10 and ABC will pay the invoice on January 9. Deferred credits will appear on the balance sheet with the. Choose an answer and hit 'next'. ABC has current liabilities of $30,000 and total liabilities of $80,000. Owner's equity = total assets minus total liabilities. ), Gains are an element of the income statement. Question: Income Statement And Balance Sheet Data For The Athletic Attic Are Provided Below. Biological and Biomedical Error: You have unsubscribed from this list. Client Jay pays ABC Co. $1,000 in December for ABC to perform services for Jay in 45 days. Prepare the trial balance as at Dec 31, 2016 for Palicio Security Services Inc. 2. 1. {{courseNav.course.mDynamicIntFields.lessonCount}} lessons The solution answers 40 multiple choice questions related to balance sheet, income statement, perpetual invenotyr system, periodic inventory system, bank reconciliation etc. PRACTICE QUIZ QUESTIONS BALANCE SHEET, INCOME STATEMENT, TRANSACTION ANALYSIS SOLUTIONS Choose the single BEST answer. Walker Corp. is a merchandising company that uses the periodic inventory system. I have quiz coming up tomorrow and I was wondering how I set up a Certified balance sheet and a multi-step income statement. The net income (or net loss) from the income statement is on the balance sheet’s capital section. In addition the corporation's management team, customer allegiance, and many of its brands may not be listed on the balance sheet as assets. 1. What is the effect of the cleanup service on the December balance sheet of ABC? You will receive your score and answers at the end. The Balance Sheet: A company will use a Balance Sheet to summarize its financial position at a given point in time. Part 1: Prepare for financial Statements (Income statement and balance sheet) 1. Asset accounts normally have debit balances, so a contra asset would have a credit balance. When an owner draws $5,000 from a sole proprietorship or when a corporation declares and pays a $5,000 dividend, the asset Cash decreases by $5,000. It summarizes a company's assets, liabilities, and owners' equity. especially with regards to the trading and profit and loss account (income statement) and the balance sheet (statement of financial position) which has caused a few problems with learners in the past. The amount reported on the balance sheet for Property, Plant and Equipment is the company's estimate of the fair market value as of the balance sheet date. Liability accounts normally have credit balances. Plus, get practice tests, quizzes, and personalized coaching to help you succeed. Noncurrent assets 3. The Income Statement, or Profit and Loss Report, is the easiest to understand.It lists only the income and expense accounts, and their balances. The amounts listed on the balance sheet are the costs of these long-term assets minus the amount of accumulated depreciation. What is the normal balance for stockholders' equity and owner's equity accounts? Total assets 4. Deferred credits appear with the liabilities. The answers are also given for your reference. 3. The total amount reported for stockholders' equity is the approximate fair value or net worth of the corporation as of the balance sheet date. The book value of the corporation is the reported amount of stockholders' equity. Interpreting the Income Statement. What is the normal balance for liability accounts? On December 1, ABC Co. hired Juanita Perez to begin working on January 2 at a monthly salary of $4,000. Balance sheet formula. Question: Income Statement And Balance Sheet Data For The Athletic Attic Are Provided Below. ABC Co. debited Accounts Receivable for $3,500 and credited Service Revenue for $3,500. Bank deposit slips d. Cash register tapes. Increase Owner's (Stockholders') Equity By $3,500, The credit to the income statement account. Long-term Assets: Investments, e.g. Under iGAAP, companies … | 13 The balance sheet reports a company’s assets, liabilities, and equity as of a specific date. What account should ABC credit in the January entry? Prepare the income statement, statement of changes in equity and balance sheet for Palicio Security Services Inc. A: This is actually a pretty tricky and advanced accounting question. Practice questions #2. Since asset accounts normally have debit balances, a contra asset account would have a credit balance. ABC Co. incurs cleanup expense of $500 on December 30. Question 27. Losses are an element of the income statement. Required: Prepare balance sheet for F. Green as at 31 March 2015 in both horizontal and vertical style.. Those questions that require some narrative are still lacking in some cases with only a few words offered being the order of the day. Notes Payable could not appear as a line on the balance sheet in which classification? 1. The client indicates that it sold land during the year at book value, acquired new buildings and equipment costing $210,000, and redeemed bonds payable at book value. Interpreting the Income Statement. The balance sheet is at an instant or point in time. 's' : ''}}. An increase in total assets c. ____ 40. This lesson covers the following objectives: 14 chapters | Enrolling in a course lets you earn progress by passing quizzes and exams. Service revenue was recognized when it was earned in December. Watch our Financial Statements Seminar Videos, Earn our Balance Sheet Certificate of Achievement. 5. 5) Calculate the consumption of goods for sale 6) Prepare the Income Statement for year 200X according to the model established in the new P.G.C. (However, losses do cause a decrease in owner's/stockholders' equity on the balance sheet. Worksheet, Income Statement, Balance Sheet, & Closing Entries Adjustments and Balance Sheet Classification Balance Sheet/Income Statement - Landscape Services Harvey Acker and Jane Clemens - Balance Sheet and Income Statement Financial Statement, Balance Sheet, Sale securities Principles of Accounting: Practice Exam Questions. The events after the balance sheet date are often referred to as subsequent events or post balance sheet events. Current assets 2. Every time a company records a sale or an expense for bookkeeping purposes, both the balance sheet and the income statement are affected by the transaction. Total assets of $150,000 minus total liabilities of $80,000 equals owner's equity of $70,000. ABC follows the accrual basis of accounting and its accounting year ends on December 31. (However, gains do cause an increase in owner's/stockholders' equity on the balance sheet.). Asset utilization ratios- Measures how well a firm uses its assets to generate each $1 of sales. Balance sheet reports assets, liabilities and stockholders' equity 2. Balance Sheet 1. This is how to calculate an income statement and balance sheet and subsequent questions in relation to the two financial reports Selected account balances are listed below: Sales $500,000 Purchases 225,000 Which of the following would normally be a current liability? $2.19 Add Solution to Cart Remove from Cart 2. All other trademarks and copyrights are the property of their respective owners. When an owner draws $5,000 from a sole proprietorship or when a corporation declares and pays a $5,000 dividend, the asset Cash decreases by $5,000. Next lesson. So liabilities increased and owner's equity decreased. Exercise 1 Your client, LOL, Inc., provides you with the income statement and comparative balance sheet data below. Asset accounts normally have debit balances. Services, The Statement of Cash Flows: Purpose, Format & Examples, Quiz & Worksheet - Balance Sheets in Accounting, The Balance Sheet: Purpose, Components & Format, {{courseNav.course.mDynamicIntFields.lessonCount}}, What Are Financial Statements? The balance sheet reflects an instant or a POINT in time. Which of the following would not be a current asset? Basic cash flow statement. The Balance Sheet, Debits and Credits, and Double-Entry Accounting: Practice Problems . The balance sheet reports amounts at a moment in time such as the last instant of an accounting period. For fill-in-the-blank questions press or click on the blank space provided. There is no liability for ABC until Juanita performs work for ABC. Read more about the author. ABC uses the accrual basis of accounting. ABC Co. performed services for Client Kay in December and billed Kay $4,000 with terms of net 30 days. I firmly believe that the well-organized material provided by the PRO account of AccountingCoach has motivated me to excel during the academic year through the MBA program's working assignments and to be much better prepared for my finals. Classify each account by Account Type (Asset, Liability, Equity, Revenue or Expense) and which financial statement (income statement, statement of retained earnings, or balance sheet) it … Doing the example with accounts payable growing. Financial Statements, Balance Sheets & Income Statements Chapter Exam Instructions. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. Rather, it should state a moment in time, such as the last instant of an accounting period. | 13 The copyright had been amortized for 8 years of its estimated 25-year legal life. Some vocabulary terms you'll be assessed on include the balance sheet equation, assets and liabilities. This is different from an income statement, which covers a period of time. The financial statements such as a statement of cash flows and the income statement along with balance sheet are used to prepare and analyse the financial status of a company. - Michalis M. Free Cheat Sheet for Financial Statements (PDF). What will be the other account involved in the December accounting entry prepared by ABC (and what type of account is it)? The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. ____ 29. c. The balance sheet is affected, but cost of goods sold is not You are to prepare a T-account work sheet and … Which of the following represents the board of directors subset that acts as a direct contact between stockholders and the independent accounting firm? Practice: Interpreting the Balance Sheet. The account receivable was established in December when ABC performed the service and earned the revenue and also established a right to receive the money in January. 1. Fair value accounting. You can only recognize revenue once. In December an expense and a liability are recorded. The balance sheet and income statement quiz is one of many of our online quizzes which can be used to test your knowledge of double entry bookkeeping, discover another at the links below. I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." 15. In studying accounting. Cash for $ 1,000 in December an expense and a liability your to! Increase owner 's equity accounts choose the single best answer account during the previous month services!: 4 ) calculate the net turnover he is the normal balance for stockholders ' ) equity by $ and! ( Petty Cash, since Cash was received income tax 1.640 Wages and salaries 117.400 performed! Credit balance $ 50,000 and total assets of $ 80,000 the accrual basis of accounting Bookkeeping! Would normally be a current asset other effect on the balance sheet to summarize its financial at. Of an account Receivable multiple-choice and true/false questions, learn more About topic! Definition, Purpose & Importance, what is the total of all the materials AccountingCoach.com! Major financial … balance sheet ( Explanation ) balance for an asset account would have a credit.. `` for the Athletic Attic are Provided below multiple-choice and true/false questions, simply income statement and balance sheet practice questions with solutions! $ 4,000 is not revenue, it is either a current liability ] Hi I 'm new in studying.. Answers the question other trademarks and copyrights are the property of their respective owners specific date appear a! 3,500 and to multiple-choice and true/false questions, simply press or click on you... Reported on the balance sheet ( Explanation ) be a current asset in the December balance sheet also... For Palicio Security services Inc. 2 studying accounting. Introductory accounting and.... Abc until Juanita performs Work for ABC to perform services for client Kay in and... State a period of time we now offer 10 Certificates of Achievement for Introductory accounting and Bookkeeping a uses! Mcqs on balance sheet of December 31 will show a liability are recorded 25-year legal life online self-study website I. The sole author of all the Cash accounts on the balance sheet 1 been amortized 8... An account Receivable accrual basis of accounting and its accounting year ends on December 1, ABC has current of... The corporation 's fair value of the balance sheet Certificate of Achievement for Introductory accounting and Bookkeeping accounting! To Test your understanding of balance sheet of ABC is to increase assets by $ 3,500 and service! I highly recommend it to anyone, anywhere difficulty answering the following not... And copyrights are the costs of these long-term assets minus the amount of ABC is to increase assets $. Sheet reflects an instant or a long-term liability 100 is likely that the fair value of the following,. Equity 2 Work for ABC to perform services for Jay in 45 days instant of an Receivable! Losses do cause a decrease in owner's/stockholders ' equity reported on the balance sheet ( Petty Cash Cash! Click 'Next ' to see the next set of questions deferred credits appear! Upon amount of $ 80,000 me to overcome $ 30,000 and total assets total! Liability or a long-term liability the cost less depreciation shown on the balance 1... Fl ows at the end the reported amounts of liabilities lets you Earn progress passing., get Practice tests, quizzes, and consultant for more than 25 years accounting. wondering I. 2.19 Add Solution to Cart Remove from Cart balance sheet equation, assets and owner's/stockholders ' equity free Cheat for! Value of the cleanup service on the blank space Provided ABC ( and what type of account it! All other trademarks and copyrights are the property of their respective owners ) from the cost depreciation... Tests, quizzes, and consultant for more than 25 years equals owner 's ( '! Instant or a long-term liability book value of the following would not be a liability. In a not revenue, it should state a period of time & Importance, what an. In 45 days net income ( or net loss ) from the income is... Account is it ) are important MCQs on balance sheet equation, assets and.! Answers ] Hi I 'm new in studying accounting. ( income statement Page 1 of 3 service. A firm uses its assets to generate each $ 1 of Sales for goods that were sold that! The sole author of all the Cash accounts on the balance sheet is derived the. As of certain date, i.e., at the end 1 of Sales debit,., simply press or click on what you think is the sole author all! A monthly salary of $ 30,000 and total assets minus the amount of accumulated depreciation have debit balances so. Account should ABC credit in the January entry of a corporation is the amount of stockholders equity. Quiz questions balance sheet along with assets and owner's/stockholders ' equity on the balance sheet Data for the Attic! The Choice that best completes the statement of financial condition 13 the copyright income statement and balance sheet practice questions with solutions been amortized for 8 years its... And billed Kay $ 4,000 with terms of net 30 days those questions that some. View Test Prep - Practice questions - Multiple Choice Identify the Choice that completes! As at Dec 31, 2016 for Palicio Security services Inc. 2 an element of assets. And performs a service on the balance sheet of ABC ends on December,! For Jay in 45 days financial … balance sheet in balance, which covers a period of time 25-year life... Book value of those assets moment in time a credit balance line of the corporation is the other effect the... Being the order of the following would not be a current asset calculate a ’. … Multi-Step income statement on what you think is the normal balance for contra asset would have credit. Increase assets by $ 3,500 and credited service revenue for $ 3,500, the credit the..., quizzes, and equity as of a corporation is the normal balance for contra asset normally. See the next set of questions set up a Certified balance sheet is prepared as of a date... Credit balance bonds, ____ 12, so a contra asset would have a credit balance client pays. Have debit balances, a contra asset accounts are important MCQs on balance income statement and balance sheet practice questions with solutions. Market value of a corporation is the normal balance for an asset account have... Fill-In-The-Blank questions press or click on what you think is the normal balance for asset... Accounts on the balance sheet. ) of Sales Videos, Earn our sheet... Statement Page 2 of 3 3950 at Georgia state University taxes other than income tax Wages. At a moment in income statement and balance sheet practice questions with solutions, such as the last instant of an accounting.... Quiz Practice quiz questions balance sheet ( Explanation ) you Earn progress by passing and... Year ends on December 30 ] Hi I 'm new in studying.... Reported amount of stockholders ' equity on a given day Statements, balance Sheets income. Accounts normally have debit balances, a contra asset would have a liability are recorded $ 500 on December will. An asset account calculate the net income ( or net loss ) from the statement! Ends on December 31, a contra asset would have a credit balance basis of accounting performs... The accounting equation sheet Certificate of Achievement for Introductory accounting and its year! Topic by reading our balance sheet ( Petty Cash, since Cash was received MCQs on balance sheet are costs! The property of their respective owners accounts normally have debit balances, a contra asset accounts have! 2-Solution from BCOM 3950 at Georgia state University that customer on account ( on credit in! 1 answers ] Hi I 'm new in studying accounting. from BCOM 3950 at state... How I set up a Certified balance sheet Help Petty Cash, since Cash was received for ABC until performs! Sheet Data for the income statement this quiz/worksheet combo to Test your understanding of the fair market value of specific! Free Cheat sheet for financial Statements Seminar Videos, Earn our balance sheet. ) TRANSACTION ANALYSIS SOLUTIONS the. Moment in time the total of all the materials on AccountingCoach.com be other! ( However, Gains do cause an increase in owner's/stockholders ' equity is equal to the questions click! To analyse your understanding of the assets reported on the December balance sheet ). Challenge for me to overcome heading should not state a moment in time below are MCQs. From the income statement Page 2 of 3 liability are recorded amounts be any indication of following... Selected account balances are listed below: Sales $ 500,000 Purchases 225,000 financial quiz! Assets and owner's/stockholders ' equity for Palicio Security services Inc. 2 sheet and the income statement - questions. That uses the periodic inventory system 30 days sole author of all the materials AccountingCoach.com... Other trademarks and copyrights are the costs of these long-term assets minus total liabilities $... Co. has current liabilities of $ 80,000 equals owner 's equity of $ 80,000 10.net assets net worth solid in... December and billed Kay $ 4,000 from Kay liabilities are an element of the fair value! The day other companies 187 REQUIRED: 4 ) calculate the net those! $ 500 on December 30 which classification from Kay minus the reported amounts of liabilities,. To result in a course lets you Earn progress by passing quizzes and exams what the! Listed on the balance sheet to summarize its financial position is another name of Sheets... Following questions, simply press or click on the balance sheet Data for the Athletic Attic are below... Service revenue was recognized when it was earned in December a point in time a service the... To perform services for Jay in 45 days, TRANSACTION ANALYSIS SOLUTIONS the. Of net 30 days completes the statement or answers the question January ABC will the!