Chapter 9 - Financial Statements for a Sole Proprietorship
Liquidity Ratio
A ___________ is a measure of a business's ability to pay its current debts as they become due and to provide for unexpected needs of cash
Balance Sheet
A financial statement that is a report of the final balances in all asset, liability, and owner's equity accounts at the end of the fiscal period is the
Statement of Changes in Owner's Equity
A financial statement that is prepared to summarize the effects on the capital account of the various business transactions that occurred during the fiscal period is called a
Current Assets
Are the assets used up or converted to cash during the normal operating cycle of the business
Current Liabilities
Are the debts of the business that must be paid within the next accounting period
Profitability Ratios
Are used to evaluate the earnings performance of the business during the accounting period
Net Income
Occurs when total revenue is greater than total expenses
Financial Statements
Reports prepared to summarize the changes resulting from business transactions that have occurred during a fiscal period are caled
Return on Sales
The ____________ ratio is used to examine the portion of each sales dollar that represents profit
Current Ratio
The _____________ is the relationship between current assets and current liabilities
Report Form
The classifications of balance sheet accounts are shown one under the other in the
Income Statement
The financial statement that reports the net income or net loss for the fiscal period is covers is the
Work Sheet
The net income or net loss amount shown on the income statement must agree with the amount show on the
Income Statement section of the worksheet
The source of information for completing the income statement is the