Return on investment is also known as return on assets. Profit is also called net income. The income statement shows the financial position of a business on a specific date. According to the cost principle it is acceptable for managers to report an estimate of an asset's value. Owner's equity is increased when cash is received from customers in payment of previously recorded accounts receivable.
Every business transaction leaves the accounting equation in balance.
Unearned revenues are liabilities. Credits to accounts are always increases. Complete the following statements with the proper word or words. List two examples of external users of financial information. Revenues are defined as the 5.