Answer the questions below and explain your answer with numbers, computations, or a sentence or two.
- Determine total assets and total liabilities for ABC Company.
- Complete the accounting equation below using numbers instead of words.
Assets = Liabilities + Equity
- Are short-term payables or receivable larger? Explain the significance of the difference.
- Is the order in which assets and liabilities are listed on the balance sheet significant? Explain.
- Determine the total amount owed by ABC at the end of the year.
- Does the company have more assets or liabilities? What is the significance of determining the difference between net assets and net liabilities?
- If the company borrows an additional $10,000 which two balance sheet accounts will change? The new totals for total assets and total liabilities are …
- Explain retained earnings.
- What is the “total wealth” of the company have according to the balance sheet?
- Assume that the company paid $10,000 of dividends to the owners. Which balance sheet account (item) would have been affected by the payment?
Respond to all questions showing your computations and/or using your own words. Do not use an essay format.
Show sources when appropriate and APA is suggested, but not required.
- The objective for this assignment is to evaluate accounting concepts of balance sheet.