accounting ch1

FASB

Is the common abbreviation for the Board that currently establishes financial accounting and reporting standards in the U.S. (Enter the acronym.)

expenses, income statement

Salaries already paid to employees for the month is a(n) ______ account that appears on the ______.

financial

___ statements represent a company's primary means of communicating information to external users

corporation

a business organization that is legally separate from its owner is called a

corporation

a business organization that is legally separate from its owners is called____

decreases

a net loss ___ retained earnings

accounting

a system of maintaining records of a company's operations and communicating this information to decision makers.

?

an advantage of the corporate form of organization is that a corporation

financial statements

companies communicate information about their business activities primarily through

a net loss

if revenues are less than expenses, a company has

note disclosures management discussion and analysis

in addition to the financial statements, which of the following must be included in the annual reports

-measures business activities -communicate information to investors and creditors

in our society, the two main functions of accounting are to

1. expenses 2. net income or loss 3. revenues

income statement reports

ethics

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

10k

management discussion and analysis and note disclosures to the financial statements are included in the __ __

a net income of $5000

pizza aroma generated $11,000 in revenues and one had expenses of $6,000. Pizza Aroma's net income or loss is:

relevance

predictive value and confirmatory value are components of which fundamental qualitative characteristic?

Retained Earnings

profits earned by a company that have not been paid to stockholders

the total net income earned over the life of the company that has not been distributed as dividends

retained earnings presents

earned by the corporation

stockholder's equity arises primarily from amounts invested by shareholders and amounts

liabilities

the accounting equation is : assets= _____ + stockholders equity

stockholders equity

the accounting equation is : assets= liabilities +

balance sheet

the financial statement that displays a firm's financial position on a particular date is the ____ ____

statement of cash flows

the financial statement that provides information about cash receipts and cash disbursements for the period is the

corporation

the form of a business organization where an entity is legally separate from its owner and issues shares of stock is a

1. statement of stockholder's equity 2. income statement 3. statement of cash flows 4. balance sheet

the four financial statements published to provide information to external users include which of the following?

1. the Title of the financial statement 2. the accounting period covered by the statement 3. the name of business

the heading of an income statement should include which of the following?

operating, investing, and financing

the statement of cash flows classifies items as

1. paid in from shareholders 2. earned by corporation

the two sources of stockholders' equity are amounts

retained

undistributed profits that have accumulated in the company over time are called ___ earnings

in the heading

where is the time period covered by the income statement found?

income statement

which financial statement reports revenues and expenses?

revenues expenses

which items are found on an income statement

-common stock -accounts receivable -utilities payable

which of the following appear(s) on the balance sheet

income statements, statements of stockholders' equity, balance sheet, and statement of cash flows

which of the following are financial statements?

ability to earn a profit from its operation during the current period.

which of the following aspects relate to the information provided in an income statement?

balance sheet

which of the following financial statements shows a firm's financial position on a particular date?

-liabilities -assets -stockholder's equity

which of the following items are found on a balance sheet

accounts receivable, equipment, notes payable

which of these would be found on a company's balance sheet?

relevance and faithful representation

The hierarchy of qualitative characteristics of financial information require that, in order to be useful for decision making, information should possess the fundamental characteristics of Multiple choice question.

1. financing activities 2. investing activities 3. operating activities

The three classifications on the statement of cash flows are cash flows from

1. the title of the financial statement 2. the accounting period covered by the statement 3. the name of the business

the heading of an income statement should include which of the following?

1. measure a company's activities 2. communicate information to decision makers

the primary functions of accounting are to:

income statement

the purpose of a ________ _______ is to report the profit- generating activities of the firm during a period of time

cash receipts and cash disbursement during a period.

the purpose of a statement of cash flows is to provide information about the