Activity 2 Copy

The basic formula that accountants use is equivalent to the following calculus:

Assets = Liabilities – Equity
Equity = Liabilities + Assets
Equity = Assets – Liabilities

Below you can find the three main statements used by accountants in order to asses a business’s financial health and ability to generate profit. Fit the right description for each of them:

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include all cash a business receives from its operations, investments, and financing.
provide snapshots of organizations’ liabilities, assets, and equities at specific moments in time
show the expenses, costs and revenues for a company during a specific time period.

Cash flow statements
Balance sheets
Profit and loss statements

In September 2020, your firm has the following balance sheet. Complete the missing information in the table, using the formula learned today.

ASSETS
Cash	10.000 $
Cash equivalents	6.000 $
Savings	2.000 $
Equipment	13.000 $
TOTAL ASSETS ?	$
LIABILITIES
Taxes	2.000 $
Loans	6.000$
Term debts	3.000 $
TOTAL LIABILITIES	$
FIRM’S EQUITY
TOTAL EQUITY	$

YOUcooperATE May 24, 2021

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