Requirement 2. Did Hunter’s Overhead Door report net income or net loss?
. 4. As the manager of a Papa Sean's restaurant, you must deal with a variety of business transactions. Give an example of a transaction that has each of the following effects on the accounting equation:a.Increase one asset and decrease another asset. b.Decrease an asset and decrease equity. c.Decrease an asset and decrease a liability. d.Increase an asset and increase equity. e.Increase an asset and increase a liability. 5. Ridge Road Homes had the following cashtransactions for the month ended July 31, 2018. Prepare the statement of cash flows for RidgeRoad Homes for the month ended July 31, 2018. 2.Statement of retained earnings - Answers the question of how the business uses its earnings. Did the company pay dividends or did the company keep the earnings to further invest in the business? The
3. Balance Sheet – Answers the questions of the amount of assets a business has and who can claim those assets – creditors or owners. The balance sheet is the accounting equation reporting the assets, liabilities, and stockholders’ equity of the business as of a specific date. 4. Statement of Cash Flows – the question of whether the business generates enough cash to pay its bills. The statement of cash flows reports on a business's cash receipts and cash payments for a specific period. The statement of cash flows reports the cash coming in (positive amounts) and the cash going out (negative amounts) during a period. It only reports transactions that involve cash because it reports the net increase or decrease in cash during the period and the ending cash balance. If a transaction does not involve cash, it will not be reported on the statement of cash flows. The statement of cash flows is divided
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- Balance Sheet, Generally Accepted Accounting Principles, office supplies