A.Answer the following question about the balance sheet.Question with asterisk(*)cannot be answer directly from the text.

1.What is the financial product of the accounting process?

2.What is a balance sheet?

3.Does the balance sheet provide financial information for a long period of time(for example,January to june 1993)or does it provide information for a specific in time(for example,on june 30 1993)?

4.What is the difference between assets and liabilities?

5.How is owners’or stockholdrs’equity determined?

6.How can the relationship between assets,liabilities,and owners’equity be represented?

7.Does the accounting equqtion always remain in balance?*Why or why not?

8.How can a business use a balance sheet?*As manager.how would you find a balance useful?

ANSWER:

1.The financial product of the accounting process is the balance sheet.

2.A balance sheet is a final statements that provides a summary of what a company awns and what it owes on one particular day.

3.it provides information for a specific in time,for example,on January 30 1993.

4.assets represent everything of value that is owned by a business,liabilities are the debts that is a company ownes.

5.Owners’or stochoders equity is determinited by subtracting liabilities from assets.

6.It can be represented by the fundamental accounting equqtion,assets equal liabilities plus owners’equity.

7.Yes,it does,Because one side must equal the other if not,it must be wrong with the recording.

8.A balance is usefull for a business,because it provides a financial picture of a company on a particular day,It provides managers with financial information decision making.