assignment 3

Homework for chapter 3

1. List all the accounting terms in this chapter.

2. What are an entity’s economic activities, which can assess an entity’s

performance? 3. What kind of information do the users of financial statements want to know

about a business? 4. What is liquidity? How to judge a firm’s solvency?

5. What’s the difference between the single-step income statement and the

multiple-step income statement? 6. Can you explain the purpose and format of balance sheet and income statement? 7. Use the given information of x Trading Company and prepare an income

statement.

Sale revenues Purchases Rent expense Sales discounts

$162000 86000 2400 2800 1900 850 1850 1200 2000 2500 1800 9200 400 1600 98000 8500 400 94000

Purchases discounts Utilities expense

Sales returns and allowances

Purchases returns and allowances Freight in Freight out

Advertising expense Sales salaries expense Insurance expense Depreciation expense Inventory (beginning) Office salaries expense Supplies expense Inventory (ending)

请各位同学动动脑筋，freight in放在成本里，freight out 要放在那里？