1.

Owners’ equity and liabilities because, Assets= Liabilities + Owner’s equity

2. Step one is Fill in the statement filling; Step 2 is List the Assets; Step 3 List the liabilities; Step 4
is the Calculate owner's equity; Step 5 Put it all together
3. a) Creditors can see how much of claim other creditors have on the business and how solvent that
business is at point in time
b) Government is interested in the ability to pay taxes and other like statistic Canada are
interested in for the reporting purpose
c) Investors: They are concerned about solvency so they will not lose their investment
d)Ownvers: Tell them what their claim is on their assets as compared to the creditors. Examining
their own balance sheet well let them know how their financial position is changing
4. The four types of expenses are things like salaries, advertising, maintenance and utilities.
Subtracting Total revenue and Total expenses will give you net worth
5. Step one: Fill the statement heading; step 2 Organize the Revenue Section; Organize the Expense
section; Calculate net income or Net loss
6. A marketing firm purchases and exchanges substantial things. Service organizations sell benefits
rather than unmistakable things. Pay proclamations for each kind of business contrast in an
assortment of ways, including such benefits and misfortunes experienced, cost of merchandise
sold, and net income.
7. To Find Net income, Service business is Revenue - Expenses = Net income – Retail is
Revenue - Costs of goods sold= Gross profit and Gross profit- Expenses = net income
8. Good Inventory control saves the company money and increases customer satisfaction
9. It indicates how much the owner has invested, as well as the net gain or loss from a
specific time period. Completing the conditions in the statement will ensure that the
owner's equity is completed. Also, it provides any financial information and
statements.
10. The Accounting section is significant in contributing on the grounds that potential
investors assess an organization's presentation utilizing budget reports that depend
on a foreordained bookkeeping period. Some examples of cash flow into a business
include sales, interest received from investments, accounts receivable that will be
collectedness. Few examples of cash moving out of the business are rent, payroll,
accounts payable, interest payable and insurance.