In the context of balance sheets, what is the accounting equation? Define each of the elements in the accounting equation.
What will be an ideal response?
Answers will vary. One of the major responsibilities of financial accounting is the preparation of three basic financial statements: the balance sheet, income statement, and statement of cash flows. Though the balance sheets of different firms vary in specifics, all of them are organized to reflect the most famous equation in all of accounting-so famous that it is usually referred to simply as the accounting equation. The accounting equation is: Assets = Liabilities + Owners' EquityAssets are things of value that a firm owns, such as its cash, inventory of goods available for sale, land, machinery, equipment, and buildings.Liabilities indicate what the firm owes to nonowners or, put another way, they represent the claims nonowners have against the firm's assets. The amount the firm owes to a bank when it takes out a loan is an example of a liability. Accounts payable, what the firm owes suppliers when it buys supplies on credit, is another example of a liability.Owners' equity refers to the claims the owners have against their firm's assets. In a corporation, one of the key owners' equity accounts is common stock, which represents the shares of ownership investors have in a business. Retained earnings, which are the earnings that have been reinvested in the company (rather than distributed to owners), are also included in owners' equity.
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In the GLOBE study, the authors derived nine cultural dimensions and measured them both as practices and ______.
a. systems b. processes *c. values d. characteristics
In her presentation on improving employee morale, Jillian makes this statement: So far, you've heard only about the problems we have with morale; let's move to some solutions. Jillian has employed the verbal signpost called A) summarizing
B) previewing. C) switching directions. D) revealing.
On a certificate of deposit, the bank is the maker and the depositor is the payee
Indicate whether the statement is true or false
Ridley is an officer of Sun Watts, Inc Ridley knows that a Sun Watts engineer recently developed a new, inexpensive method for collecting, storing, and converting solar power into fuel. Ridley takes advantage of this information to buy Sun Watts stock
from Taylor and, after the discovery is announced, to sell the stock to Ulrich at a profit. Taylor claims that this is a violation of federal law. Is Taylor correct? If so, what federal law has Ridley violated, and what are its possible penalties?