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    What are some items that appear on an organization's balance sheet? How does an organization calculate net income? What statements are useful in explaining how much cash an organization uses or generates during an accounting period? Why?

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    The balance sheet contains two sides - the assets side, and the liabilities and owner's equity side.
    The asset side includes items such as cash, accounts receivables, equipment, and investments.
    The liabilities side includes items like mortgages, accounts payable, notes payable, and other short and long-term liabilities. The right side also includes owners equity, retained earnings, shareholder draws. ...

    Solution Summary

    The solution provides a good discussion regarding the balance sheet, the calculation of net income, and an organization's optimal use of cash as provided by the statements.