Business Chapter 1

what is an income statement?

A report of net income or loss over an accounting period

Given the accounts below, choose all of the ones that affect equity

Expenses Dividends Common Stock Revenues

What is GAAP?

Generally Accepted Accounting Principles Ultimate accounting rule

Identify which of the following lists of accounts would belong on the statement of retained earnings.

Identify which of the following lists of accounts would belong on the statement of retained earnings.

which statement below defines accounting?

It identifies, records, and communicates business transactions

Given the statements below, choose the most accurate definition of dividends.

Outflows of cash or other assets paid to the owners of a corporation

All of the following are part of the FASB conceptual framework

Recognition and measurement Objectives Elements Qualitative characteristics

what are assets?

resources a company owns that will eventually bring benefits to the business or value (future economic benefits)

Equity is composed of contributed capital and

retained earnings

The ____ recognition principle states that revenue is recognized when goods or services are provided to customers and at an amount expected to be received.

revenue

what are liabilities?

what a company owes or what you owe

How do you find Assets?

Assets = liabilities + equity

Which of the statement(s) below define(s) an asset?

Resources controlled by the business An amount owned Resources with expected future benefits

A corporation's equity has two main parts. Identify these two parts.

Retained earnings Contributed capital

Given the list of accounts below, identify which of them would appear on a balance sheet

Retained earnings, 12/31 Supplies Equipment Accounts Payable Cash

Given the accounts below, choose all of the ones that affect equity.

Revenues Expenses Dividends Common Stock

The correct definition of a balance sheet includes which of the following statements?

The statement reports the financial position of a company at a point in time. The statement reports assets, liabilities and equity at a point in time. The statement reports the equality of the accounting equation at any point in time.

What is a balance sheet?

a snapshot of the firm's assets and liabilities at a given point in time

is common stock added or subtracted from equity?

added

A process of analyzing data to identify meaningful relations and trends is called data

analytics

The FASB conceptual framework consists of all of the following except: Multiple choice question. concepts qualitative characteristics objectives elements recognition and measurement

concepts

The statement of retained earnings explains changes in equity from net income (or loss) and from any ______ over a period of time

dividends

what is a statement of retained earnings?

explains changes in equity from net income (or loss) and from any dividends over a period of time

Describe the order in which a company prepares financial statements

income statement statement of retained earnings balance sheet statement of cash flows

The _____ principle states that accounting information is based on actual cost.

measurement

what is the biggest asset?

money

what are the three factors to the fraud triangle

opportunity, pressure, rationalization

liabilities are receivable or payable

payable

is assets accounts receivable or payable?

receivable

Generally accepted accounting principles (GAAP) wants information to have

relevance and faithful representation

The four general accounting principles include

revenue recognition full disclosure expense recognition measurement

are dividends added or subtracted from equity?

subtracted

When supplies are purchased on credit it means that

the business will pay for the supplies at a later time. the Accounts Payable account will be increased. a liability has been incurred.

what is equity?

the owners claim on assets

A graphical presentation of data to help in understanding their significance is called data

visualization