What events or transactions change equity


Response to the following questions:

1. Describe the three basic forms of business organization and their key attributes.

2. Define (a) assets, (b) liabilities, (c) equity, and (d) net assets.

3. What events or transactions change equity?

4. Identify the two main categories of accounting principles.

5. What do accountants mean by the term revenue?

6. Define net income and explain its computation.

7. Identify the four basic financial statements of a business.

8. What information is reported in an income statement?

 

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Financial Accounting: What events or transactions change equity
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