I. FIRST PART. Answer the questions. 1. Define accounting.
Is the process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions and informed judgments. 2. What is the Accounting Equation or the Balance Sheet Formula?
Assets= Liabilities + Owner’s Equity 3. What is the income Statement Formula?
Net Income = Revenues - Expenses 4. What is the Retained Earning Formula?
RE = Beginning Balance +/- Net Income - -+Dividends 5. Define the next key terms.

a. Interest
Is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. b. Creditor
An organization or individual who lends to the entity. …ver más…

Calculate the total current assets at December 31, 2009. j. Calculate the total liabilities and owners’ equity at December 31, 2009.
Income Statement k. Calculate the earnings from operations (operating income) for the year ended December 31, 2009. l. Calculate the net income (or loss) for the year ended December 31, 2009. m. What was the average income tax rate for Pope´s Garage for 2009? n. If $ 16,000 of dividends had been declared and paid during the year, what was the January 1, 2009, balances of retained earnings?
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