Question: 1. Describe what is meant by:
(a) an asset
(b) a liability
(c) owners' equity.
2. Describe what is meant by the term ‘balance sheet equation'.
3. Describe the difference between a profit and loss statement and a balance sheet.
4. In connection with the information provided in problem 2.6 above, prepare the following:
(a) The MacNoodle restaurant's profit and loss statement for April 20X1.
(b) The MacNoodle restaurant's statement of owners' equity for April 20X1.
(c) The MacNoodle restaurant's balance sheet as at 30 April 20X1.