ITM 102 Lecture 3: Chapter+3+-+Introduction+to+Accounts+-+Student+Copy+-+Fall+2017+-+New
Document Summary
At the beginning of the year a business has liabilities of ,500 and equity of ,250. During the year liabilities increased by ,700 and the business had additional capital contributions by the owners of ,000, revenues of ,600, expenses of ,750, and dividends of ,000. Analyze the transactions using the critical and enhancing questions and record the business activities using the expanded accounting equation. K12 inc. is a for-profit education company selling online schooling and curriculum in the united. The answers to the bftp questions are from the knowledge you gained in chapter 1 and 2. As you can see from bftp3-2, in order to manage your business you need to use financial information to make decisions. When the information is not in a form that allows you to quickly evaluate your past activities, it is difficult to make decisions about the future. The accounting system should provide information that is useful for decision-making.