Sections:

Financial Statements of Sole Proprietorship, Page 2

Icon for Objectives Financial Statements of a Sole Proprietorship: Objectives

After you have completed this section, you will be able to:

  1. Prepare a Statement of Changes in Owner’s Equity. 
  2. Explain the purpose of a balance sheet. 
  3. Prepare a balance sheet. 
  4. Explain the purpose of a Statement of Cash Flow. 
  5. Explain the ratio analysis and compute ratios. 
  6. Define the accounting terms introduced in this chapter.