Accounting & Financial Analysis CH. 1 - 5 NEWEST 2025/2026 ACTUAL EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED

Accounting & Financial Analysis CH. 1 - 5

Accounting Equation
Assets = Liabilities + Equity


Net Income Equation
Net Income = Revenue - Expenses


Balance Sheet
A list of a Company's investments and assets of Financing using the ACCOUNTIONG
EQUATION


Income Statement
Company's Score Card - reviews the outcomes of operations.


Statement of Stock Holder's Equity
Details adjustments in ownership


Statement of Cash Flows
Details the assets and uses of cash


What is Net Income
The growth in fairness after subtracting fees from Revenue.
(Uses the Net Income Equation)


Net Income Statement Layout
Revenue
- Cost of Goods Sold
-----------------------------
Gross Profit
- Other Expenses together with
earnings tax
-----------------------------
NET INCOME (or Loss)

, Statement of Stock Holder's Equity Layout


Balance Sheet Layout


Statement of Cash Flows Layout


Articulation
Linkage a few of the four primary statements:
- Balance Statement
- Income Statement
- Statement of Stock Holder's Equity
- Statement of Cash Flows


Generally Accepted Accounting Principals (GAAP)
Set of requirements and tactics designed to to manual the guidance of economic statements.


Return on Equity Ratio
Net Income
-----------------
Average Stockholder's Equity

ex:
100,000
---------------
(36,000 + 27,000) /2
or
a hundred,000
---------------
31,500
=========================
3.17


Debt to Equity Ratio
Total Liabilities
----------------------------
Total Stockholder's Equity