acct

The three most common forms of business organization

Corporation Sole Proprietorship Partnership

the financial statement that summarizes revenue and expenses for a period of time is the .... .....

Income statement

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

Provides limited liability to stockholders

management discussion and analysis and not disclosed to the financial statement are included in the ... ....

Annual report

who has the responsibility for preparing financial statement in accordance with generally accepted accounting principles

CPA firms who audit company

if revenues are less than expenses a company has

a net loss

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

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

the system that maintains record of a company operation and then communicates that information to decision makers is referred to as

accounting

the two main functions of ...... are 1 to measure business activities and 2 to communicate those measurements to investors and creditors

accounting

appears on balance sheet

accounts receivable utilities payable common stock

An ... is a resource such as cash, land, building, that is owned by a company

asset

the accounting equation is

assets = liabilities + stockholders equity

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

assets, liabilities, and cash disbursement during a period

balance sheet

assets, liability stockholder equity

the financial statement that displays a firm financial position on a particular date is the ...... .....

balance sheet

which of the following financial statement show a company financial position on particular

balance sheet

which of the following appears on the statement of stockholders equity

beginning balance of retained earning dividends net income

ending retained earning is calculated as

beginning retained earning + net income - dividend

the purpose of a stat3ement of cash flows is to provide information about the

cash receipts and cash disbursement during a period

which of the following accounts is on the statement of stockholder equity

common stock

in our society the main tow function of accounting are to

communicate information to investors and creditors measure business activities

An enhancing qualitative characteristic of accounting information that refers to the financial statement users' ability to utilize accounting information to differentiate between companies that are reporting similar events is

comparability

if the same accounting principles and method are used for similar events by two different firms this enhances what accounting qualitative characteristic

comparability

positive income is consistent with effectiveness of management

confirmatory

according to the conceptual framework for accounting information to be relevant, what two qualities must it posses

confirmatory value predictive value

the qualitative characteristic of using the same accounting method each period overtime refers to the concept of

consistency

The form of business organization where a entity is legally separate from its owners and issues share of stock is a

corporation

a net loos ..... retained earning

decrease

income statement reports

expenses revenues net income or loss

which items are found on an income statement

expenses revenues

to be useful for decision making information should possess the fundamental qualities of relevance and ....

faith

.... Statement represent a company primary means of communicating information to external user

financial

The private sector organization that is currently responsible for setting accounting standards in the US is the

financial accounting standards board

companies communication information about their business activities primary though

financial statement

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

financing activities investing activities operating activities

if the SEC does not agree with a standard issued by the private sector it can

force a change in the standard

faithful representation requires that information is complete, neutral and ...

free form material error

which of the following are attributes of FASB

full time board members independence private sector organization

the income statement is considered most useful for predicting

future profitability

where is the time period covered by the income statement found

in the heading

when revenues are greater than expenses a company has a net ..... whereas when revenues are less than expenses a company has a net ....

income loss

information that best explains company stock price performance is reported in the ... ...

income statement

the financial statement that is most useful in explaining a company stock price performance is the

income statement

the purpose of an ..... ...... is to report the profit generating activities of a company over an interval of time

income statement

the statement used to predict future profitability and a company future cash generating ability is the

income statement

which financial statement reports revenues and expenses

income statement

financial accounting should provide information that

is useful to investors and creditors in making decisions helps predict tells about economic resources claims to resources and changes in resources

if the SEC does not agree with a standard issued by the private sector it can

issue a new FASB statement

amounts owed to creditors are

liabilities

which of the following items are found on a balance sheet

liabilities assets stockholders equity

financial information that may impact investors and creditors decision to as .... and must be reported under GAAP

material

the impact of financial accounting information on investors and creditors decision is closely related to the concept of

materiality

an income statement reports

net income or loss expenses revenues

which qualitative characteristic requires that financial information should not influence decision making to achieve a predetermined result

neutrality

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

notes disclosure management discussion and anysis

which of these would be found on a company balance sheet

notes payable accounts receivable equipment

.... activities involve purchasing goods from suppliers, designing and manufacturing products and selling products to customers.

operating

three classification on the statement of cash flow are cash flows from

operating activities investing activities financing activities

the statement of cash flows classifies items as

operating and non operating

statement of cash flow

operating investing and financing activies

two sources of stockholder equity are amounts

paid in from shareholders earned by the corporation

operating activites

paying advertising expenses paying salaries to employees providing service to customers

consistently increasing income helps forecast the company ability to generate future cash

predictive value

accounting to the conceptual framework for accounting information to be relevant what two qualities must it possess

predictive value confirmatory value

which of the following and skills should an accounting professional possess

presentation skills technical accounting knowledge ability to work in teams leadership skills

career for accounting professional typically include a choice between pubic and ... accounting

private

the two main career paths in accounting are referred to as

private and public

the objective of financial accounting is to

provide useful information for external decsion

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

relevance

the heirachery qualitative characteristic of financial information required that in order to be useful to decisions making information should posses the fundamental characteristic of

relevance and faithful representation

undistributed profit that have accumulated in the company over time are called .... earning

retained

the accumulated net income earned since the inception of the corporation and not yet paid to shareholders is referred to as ... ....

retained earnings

which of the following line items appear on an income statement

revenues supplies expenses

income statement

revenues and expenses

appears on an income statement

salaries expense asset on balance sheet accounts payable

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

statement of cash flow

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

statement of cash flow

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

statement of cash flows

dividend paid to shareholders is on which financial statement

statement of shareholders equity

which financial statement shows the changes in common stock and retained earning

statement of stock holders equity

which financial statement shows the changes in common stock and retained earning

statement of stockholders equity

identify which of the following are included in the heading of the statement of stockholders equity for Xoff inc

statement of stockholders equity Xoff Inc the period of time covered by the statement

which of the following are financial statement

statement of stockholders equity balance sheet income statement

for a corporation the owners claims to the resources of a company are called

stockholders equity

the purpose of an income statement is to

summarize the profit-generating activities that occurred during a particular reporting period

which of the following are assets

supplies inventory

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

the name of the business the accounting period covered by the statement the title of the financial statement

stockholders equity is

the owner claim to resources of the corporation

the heading on the statement of stockholders equity includes which one of the following

the period of time covered

..... refers to information being available to users early enough to allow them to use it in the decision process

timeliness

the qualitative characteristic when information is available early enough allowing it to be useful for a decision describes the concept of....

timeliness

true or false the statement of stockholder equity indicates the change in the various equity account

true

a consensus among different individuals appraising the value of land describes which qualitative accounting

verifiability

when the cost of an item can be traced to objective evidence of transaction such as a sales receipt canceled check and bank statement the information has the quality of

verifiability

Which are Liabilities

wages and salaries payable notes payable

which of the following accounts is on the statement of stockholders equity

common stock

which of the following accounts are stockholders equity accounts

common stock land retained earnings

the primary function of accounting are to

communicate information to decision makers measure a company activities

faithful representation requires information to have which of the following three characteristics

completeness neutrality free from material error

the four primary statement published to provide information to external user include which

statement of cash flows income statement statement of stockholder equity balance sheet

which of the following line items appear on an income statement

supplies expense salaries expense service revenue

financial accounting should provide information that

tells about economic resoursed claims to resources and changes in resources and claims help to predict cash flows

miton corp has beginning retained of $800 during the year miton had $2,000 of revenues and $900 in expenses miton paid a dividend of $100 what is retained earring at year end

$1,800 Beginning $800+$2,000 revenues - $900 expenses - $100 dividend =$1,8000

Rahls issues stock to investors for $ 20,000 and has $5,000 of net income in its first year of operation. during year 2 rahls earns $10,000 in net income and pays a dividend to stockholders of $4,000 what is the balance in stockholder equity at the end of year 2

$20,000+$5,000+$10,000-$4,000=$31,000

The system that maintains records of a company operation and then communicates that information to decision makers is referred to as ....

Accounting

the financial statement that displays a firm financial position on a particular date is the ..... ....

Balance sheet

true or false dividend paid to shareholders are recorded on the income statement as an expense

FALSE

....... is the common abbreviation for the board that currently establshed financial accounting and reporting standards in the u.s

FASB

Three most common forms of business organization are sole proprietorship, ...... , and ....

Partnership corporation

Operating Activities

Paying salaries to employees Paying advertising expenses