THEORY KKK - a snapshot of the financial status of the...

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DESHUN MOSS-CONDELL STUDENT # 000 00 6336 Accounting Theory Problem 7-6 a,b.c a) In my opinion the excerpt implies that the balance sheet is more important than the income statement because it refers to the information contained in the income statement as “residual in nature”. Because accrual is used the impact of transactions on the enterprises accounts is usually recognized in the period it occurs. As timing of the occurrence of the transaction and impact on company resources is so important then the balance sheet is the most current and accurate reflection of an entity’s economic status at a given period of time. The balance sheet is
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Unformatted text preview: a snapshot of the financial status of the organization at an instant in time. b) As stated earlier the balance sheet is a snapshot of the financial status of the organization at an instant in time. It summarizes the status of resources at a particular point in time. c) The financial statement is articulated means that items in the balance sheet are directly linked to those found in the income statement. They represent a series of transaction undertaken by a company during a specified period of time. Financial statement summarizes these transactions and shows the impact that they have on the economic status of the enterprise....
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This note was uploaded on 02/02/2012 for the course ACCOUNTING Acc632 taught by Professor Marry during the Spring '10 term at College of the Bahamas.

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