Financial Analysis Essay -- essays research papers

fiscal Accounting MidTermI.Debit vs. citeA.DebitDebit = unexpended field side of T-accountOn the Balance Sheet a debit indicates 1.An annex in an asset2.A diminish in a financial obligation3.A decrease in shareholders equity itemB. ascribeCredit = Right side of T-accountOn the Balance Sheet a denotation indicates1.A decrease in an asset2.An increase in a liability3.An increase in shareholders equity item** HINT** - pose two components of each transaction 1.) what did you get 2.) where did it come from. The debit is what you got, and the credit is the source of the item you received. For instance, lets imagine that you purchase a computer with your credit card. Since the computer is what you received its going to effect in a debit to the asset account for your computer. The credit allow for be applied to the credit card liability account for the analogous amount. II.What accounts Increase/ hang with debits and creditsAccount TypeDebit CreditBalance SheetAssets Increase fall offBalance SheetLiabilitiesDecreaseIncreaseBalance SheetOwners EquityDecreaseIncreaseIncome debateRevenueDecreaseIncreaseIncome Statement salute of goods soldIncreaseDecreaseIncome StatementExpensesIncreaseDecreaseIII. representative Accounts A.AssetsCashMarketable Securities Accounts receivable Notes receivableInterest Receivable&nb... ...ccounts decrease cash and appear with negative signs.2) Step 2 Classify the variety in each balance sheet account as an operating, or investing, or financing activity and enter it in the appropriate mainstay of the work sheet using the same sign as the front column. 3.) Step 3 Sum the entries in the Operations, expend, and Financing Columns and net the 3 sums to ensure that they equal the net change in cash. ***Things to Remember***In T-accounts the balance are as followsAsset balance on the leftLiability balance on the rightStockholders equity balance on the rightBalance Sheet is written as followsAssetsLiabilities Stockholders equityIncome Statement is written as followsSales Other RevenueCost of Goods sellExpensesNet IncomeStatement of Cash Flows (Indirect Method) is written as followsOperations InvestingFinancing