Completeproblems2111and2118fromthetext. When you view the answer key, remember that the textbook tells you to
write entries for the indirect method which is perfectly fine if that is how you understand indirect cash flow statements.
Fin Review Handout
Dr. Clifford Brown
1. The following information was taken from the records of Lizs Theatrical Supplies for 2016.
In addition to selling theatrical supplies, the Company owned and operated a theater until October 15,
December 31, 2015
LIABILITY AND EQUITY
Financial Review Summer 2016
RECORDING VERSUS REPORTING
Recording refers to the bookkeeping (data enter)
Reporting refers to transformation of data into information for users
ACCRUAL VERSUS CASH-BASIS TO INCOME MEASUREMENT
ACCRUAL-BASIS- records revenue (