Accounting 230 Exam 1- chapter 1

expenses are:

the costs of doing business that are necessary to earn revenue

Stockholder's equity is...

the owner's claims to resources of the corporation

A(n) ____ is a resource, such as cash, land, or buildings that is owned by a company

asset

Which of the following financial statements shows a firm's financial position on a particular date? -income statement -statement of stockholder's equity -statement of cash flows -balance sheet

balance sheet

a _____ is a distribution of net income to the stockholder's of a corporation.

dividend

Measuring business activities and reporting those measurements to external parties is the function of ______ accounting

financial

The abbreviation GAAP stands for...

generally accepted accounting principles

The _____ ______ assumption anticipates that a business will continue to operate indefinitely

going concern

the _______ assumption anticipates that a business will continue to operate indefinitely

going concern

The financial statement that summarizes the profit-generating activities of a company during a particular period of time is the

income statement

the financial statement that summarizes the profit-generating activities of a company during a particular period of time is the

income statement

Any amount owed to a creditor is classified in the balance sheet a a/an _______

liability

The two primary functions of financial accounting are to

measure business activities and communicate measurements to external parties

Revenues minus expenses equals

net income

Which of the following appears on the statement of stockholder's equity? net income, beginning balance of retained earnings, cash received during the accounting period, dividends

net income, beginning balance of retained earnings, dividends

The classifications on the statement of cash flows are from

operating activities, financing activities, investing activities

the two sources of stockholders' equity are amounts _______

paid in from shareholders, earned by the corporation

The ______ assumption allows the life of a company to be divided into artificial time periods to provide timely information

periodicity

Net income is...

profit and revenues minus expenses

_____ is earned by selling goods or services to customers

revenue

Which of the following are among the basic assumptions underlying U.S. GAAP? -revenue recognition -economic entity -full disclosure -going concern -neutrality -monetary unit -periodicity

-economic entity -going concern -monetary unit -periodicity

Which of the following items are found on a balance sheet? -dividends -stockholders equity -assets -revenue -liabilities

-stockholders equity -assets -liabilities

Which of the following users of financial information contribute financial resources to a company? Creditors, employees, suppliers, regulators

Creditors

______ is a term that refers to a code or moral system that provides criteria for evaluating right or wrong

Ethics

In financial accounting which of the following are the three types of business activities of a company?

Operating activities, financing activities, investing activities