By Carl S. Warren, James M. Reeve, Jonathan Duchac

The authors of ACCOUNTING, 23e, remember the fact that you want to locate very important info fast. This textbook makes use of an built-in studying method that can assist you whole homework and lead you to accounting mastery. development at the authors' confirmed process, transparent examples and high-impact writing advisor you thru the coaching of economic statements because the authors artfully supply a framework for realizing what accounting is all approximately and accounting's evolving position in enterprise.

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The income statement reports the revenues and expenses for a period of time, based on the matching concept. This concept is applied by matching the expenses with the revenue generated during a period by those expenses. The excess of the revenue over the expenses is called net income or net profit. If the expenses exceed the revenue, the excess is a net loss. The revenue and expenses for NetSolutions were shown in the equation as separate increases and decreases in each item. Net income for a period increases the owner’s equity (capital) for the period.

Sarbanes-Oxley Act. The Act establishes a Public Company Accounting Oversight Board to regulate the portion of the accounting profession that has public companies as clients. In addition, the Act prohibits auditors (CPAs) from providing certain types of nonaudit services, such as investment banking or legal services, to their clients, prohibits employment of auditors by clients for one year after they last audited the client, and increases penalties for the reporting of misleading financial statements.

Less withdrawals . . . . . . . . . . . . . . Increase in owner’s equity . . . . . . . . . . . Adam Cellini, capital, April 30, 2010 . . . . . . . $ 80,000 $ 50,000 55,550 $105,550 30,000 75,550 $155,550 For Practice: PE 1-5A, PE 1-5B Balance Sheet Bank loan officers use a business’s financial statements in deciding whether to grant a loan to the business. Once the loan is granted, the borrower may be required to maintain a certain level of assets in excess of liabilities.

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