How do transactions impact the elements of the accounting equation? What are the elements of Stockholder's Equity? What are the elements of Retained Earnings? Why is Retained Earnings different from Net Income? What is par value and how is it related to Stockholder's Equity? Financial Statements: What accounts appear on a balance sheet versus an Income Statement? What is the difference between permanent versus temporary accounts? What are the different subtotals that are typically presented on financial statements, such as Gross Profit, Income from Operations, Current vs Non-Current Assets and Liabilities? Revenue recognition: how does a company "earn" revenue? What is the matching principle? Adjusting Entries: What is the purpose of the adjusting process? Why does an adjusting entry never impact cash? What is the difference between the types of adjusting entries (deferrals and accruals)? Why is a a prepaid expense considered an asset and when does it become an expense?

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Understanding Transactions and Financial Statements Heres a breakdown of your accounting questions Impact of Transactions on the Accounting Equation The accounting equation Assets Liabilities Stockhol... View the full answer