Questions from General Accounting

Q: What events or transactions change equity?

What events or transactions change equity?

Q: What contra account is used when recording and reporting the effects of

What contra account is used when recording and reporting the effects of depreciation? Why is it used?

Q: What do accountants mean by the term revenue?

What do accountants mean by the term revenue?

Q: Define net income and explain its computation.

Define net income and explain its computation.

Q: Identify the four basic financial statements of a business.

Identify the four basic financial statements of a business.

Q: Angel Martin is a young entrepreneur who operates Martin Music Services,

Angel Martin is a young entrepreneur who operates Martin Music Services, offering singing lessons and instruction on musical instruments. Martin wishes to expand but needs a $30,000 loan. The bank req...

Q: What information is reported in an income statement?

What information is reported in an income statement?

Q: Give two examples of expenses a business might incur.

Give two examples of expenses a business might incur.

Q: What is the purpose of the statement of owner’s equity?

What is the purpose of the statement of owner’s equity?

Q: What information is reported in a balance sheet?

What information is reported in a balance sheet?