We use report form of Balance Sheet when there are only few accounts involve 18

We use report form of balance sheet when there are

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We use report form of Balance Sheet when there are only few accounts involve. 18. When do we use an account form of Balance Sheet? We use account form of Balance Sheet when there are plenty of accounts involve. 19. What is a Statement of Changes in Owner’s equity? The Statement of change in Owner’s equity summarizes the changes that occurred in Owner’s Equity. It is arrived by determining the beginning Owner’s equity plus Net income and Additional investments minus Net Loss and Owner’s withdrawals, hence Ending Equity Balance. 20. What is a Statement of Cash Flow? Statement of Cash Flow is a statement that provides information about the cash that is generated and used in the business for a given period of time. 21. How many activities the Cash flow can be classified? There are three Cash flow activity classification. These are Operating activity, Investing Activity, and Financing Activity. 22. What is direct method of preparing cash flow statement? The direct method looks directly at the source of the cash flows and reports it without any adjustments on the statement. 23. Discuss the relationship between Controlling Accounts and Subsidiary Ledger. A controlling account summarizes all the accounts in the Subsidiary Ledger. The total of all account balances from the Subsidiary Ledgers equals the balance of the controlling account. 24. How are the names of debtors and creditors listed in Schedules of Receivable and Payable? Names of debtors and creditors are listed in Alphabetical order in the Schedules of Receivable and Payable. 25. In what column of the Accounts Receivable subsidiary ledgers where billings to various customers are posted? The billings to various customers are posted in the Debit Column of the Accounts Receivable subsidiary ledgers.
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26. In what column of the Accounts Payable subsidiary ledger where creditor’s billing are posted? The billings to various customers are posted in the Credit Column of the Accounts Payable subsidiary ledgers
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