1. Organize the items into their various sections in a balance sheet

Retained Earnings

Earnings

Total Capital

Total Liabilities and Capital

Net Worth

Total Current Assets

Subtotal Current Liabilities

Long-term Liabilities

Total Liabilities

Current Assets

Cash

Inventory

Total Long-term Assets

Current Liabilities

Accounts Payable

Current Borrowing

Other Current Liabilities

Paid-in Capital

Liabilities and Capital

Assets

Long-term Assets

Total Assets

Other Current Assets

2. Why do businesses create financial statements?

3. Why is the owner’s equity very important in financial statements?

 

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