Study Module Notes and Homework Questions

Questions I didn’t know:

The Financial Accounting Standards Board (FASB) oversees the creation and governance of accounting standards in the United States.

Managerial Accounting focuses on providing information for internal purposes (those who work for the organization), such as managers and employees.

Generally Accepted Accounting Principles (GAAP) are the guidelines for accounting information.

Questions I wasn’t sure about:

Service Revenue isn’t an asset it is a part of retained earnings which is part of owners’ equity

The Income Statement is prepared first as you need the net income (or loss) to prepare the Statement of Retained Earnings.

Questions I struggled with:

1) Prepare the income statement for Willy Towing Service for the month ending June 30​, 2024

2) Prepare the statement of retained earnings for WillyTowing Service for the month ending

June 30​, 2024.

3) Prepare the balance sheet for Wayans Towing Service as of June 30​, 2024

4) Calculate the return on assets​ (ROA) for Allied Appliance Service the year ending December​ 31, 2024.