Category: Financial Accounting Review

Balance sheet is also called as the statement of financial position, because it presents the financial position of an entity at the end of each

Classified balance sheet presents the components of assets, liabilities and equity classified as current and non-current items. Assets are classified into current assets, property, plant

Current Assets The following assets are classified as current assets, because they are expected to be converted into cash within a year or normal operating

Current Liabilities Liabilities that are required to be paid within a year from the end of the reporting period are classified as current liabilities. Current

Stockholders’ equity classified Paid-in Capital Stockholders’ equity classified Retained Earnings Stockholders’ equity classified Net income, Dividends and Retained Earnings Stockholders’ equity classified Review Questions 1.

Financial ratios Profitability ratios Liquidity ratios Solvency ratios Activity ratios Profitability ratios What are the examples of ratios that provide information about the profitability of