M1 A2 Instructor Response

Response only needs to be 2 paragraphs with 1 reference:

Original Posting:

Don't use plagiarized sources. Get Your Custom Essay on
M1 A2 Instructor Response
Just from $13/Page
Order Essay

Part 1: Order of the income statement
Income Statement 
Cost of goods sold                                          
Gross profit
Operating Expenses
Selling expense
Administrative expenses
General Expenses
Other Revenues and expenses
Interest expenses
Net Income
Part 2: Classification of financial Statement
Financial Statement
Short-term assets
Long-term assets
Short-term liabilities
Long-term liabilities
Owner equity
Accounts receivables
Plant and equipment
Notes payable
Accounts payable
Retained earnings
 paid in capital
Part 3
A balance sheet equation is a statement that shows the state of a business at a particular time by computing assets, liabilities, business capital and balancing income over expenditure (Balance Sheet, 2016).  The equation is a crucial part of accounting as it forms the element for entire double entry accounting scheme.
The equation starts with assets. Assets are all the resources that companies use to achieve its goals (Riggs, 2007).  Assets may be long term or short term. Short-term assets include cash either solid or liquid form, inventories, and account receivable. Long-term or fixed asset includes machinery, tools, vehicles and all other properties. In most cases, the fixed assets are not fully owned by the business. This suggests that a loan might have been taken to purchase a vehicle, a mortgage on a construction, or even used money from shareholders. All these loans are taken into consideration in the liability section of a balance sheet equation (Halpin & Senior, 2009).
Claims on business assets by the financial institution, other companies or people is called liability. It is fully guaranteed that a running business has a debt somewhere and ignoring this concept would lead to misleading business accounts (Consolidated Balance Sheet, “ n.d). Mortgage and loans are examples of long-term liability while debts in terms of notes payable, accounts and accruals are short-term liabilities.
The third part of the equation is equity. Capital also referred as equity is shareholders claim on the company properties. Money contributed by owner at the start of the business or shareholders for a proprietorship ticket is accounted for here (Riggs, 2007).  Equity also accounts for returned earnings that are money held in the business to be reinvested.
The summation of claims by shareholders and claims by debtors gives total company assets.
Assets = Liabilities + Equity
The Balance Sheet. (2016).
Consolidated Balance Sheet. (n.d.). SpringerReference. doi:10.1007/springerreference_1074
Halpin, D. W., & Senior, B. A. (2009). Financial management and accounting fundamentals for construction. Hoboken, NJ: Wiley.
Riggs, H. E. (2007). Understanding the financial score. San Rafael, Calif.: Morgan & Claypool Publishers.


How does the statement of cash flows enhance the balance sheet?


Response only needs to be 2 paragraphs with 1 reference:

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 20% with the discount code WELCOME