indicate in the table below the financial statement on which each of the following accounts appear. (FINANCIAL STATEMENTS) ACCOUNTS: CASH IN THE BANK DOES IT BELONG ON INCOME STATEMENT OR STATEMENT OF CHANGES IN OWNERS EQUITY OR BALANCE SHEET. LL I NEED IS ONE EXAMPLE JUST TELL ME WHERE DOES THIS BELONG THEN ILL PICK UP ON THE REST BUT IM NOT SURE WHAT THEY ASKING FOR .PLEASE HELP ME AND CLARLIFY THE QUESTION OR WHAT DO I HVE TO DO.
The account "Cash in the Bank" belongs in the Balance Sheet. The Balance Sheet is a financial statement that shows the company's assets, liabilities, and shareholders' equity at a specific point in time. Cash in the Bank is an asset, so it is reported on the Balance Sheet.
Based on the given accounts, the account "Cash in the Bank" belongs on the Balance Sheet.
To understand why, let me explain the purpose of each financial statement and where the accounts typically appear:
1. Income Statement: This statement reports the company's revenues, expenses, gains, and losses over a specific period of time (such as a month, quarter, or year). It determines the net income or net loss of a company. Accounts on the Income Statement show the company's revenues, expenses, gains, and losses, but not assets or liabilities.
2. Statement of Changes in Owners' Equity: This statement tracks the changes in the owners' equity of a company over a specific period of time. It includes information about the beginning owners' equity, additional investments, net income/loss, and any distributions to the owners. Accounts on the Statement of Changes in Owners' Equity are primarily related to changes in owners' equity, such as contributions made by the owners or net income/loss.
3. Balance Sheet: This statement provides a snapshot of the company's financial position at a specific point in time. It consists of three main sections: assets, liabilities, and owners' equity. Accounts on the Balance Sheet represent the company's assets, liabilities, and owners' equity.
Now, coming back to the account "Cash in the Bank," it represents an asset of the company. Specifically, it falls under the assets section of the Balance Sheet because it represents the cash funds held by the company in bank accounts. Therefore, "Cash in the Bank" should be recorded on the Balance Sheet.
I hope this clarifies the question for you. If you have any more specific questions or need further assistance, please let me know!
Balance Sheet
BTW, please use lower case letters. Upper case letters, or CAPITAL letters are considered impolite in computer language. Furthermore, they are far more difficult to read and many of us won't bother.
Sra