accounting 101 chapter 1

Which of the following appear on the statement of stockholders' equity?

Beginning balance of retained earnings Net income Dividends

Phrase meaning to present the accounting records in an altered format

Cooking the books

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

Equipment Notes payable Accounts receivable Utilities payable Common stock

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

Financial Accounting Standards Board.

Which of the following items are found on a balance sheet?

Liabilities Stockholders' equity Assets

Responsible for applying generally accepted accounting principles (GAAP)

Management

Separation of management from those who own the business or finance operations

Need for auditing

View expressed by an auditor as to the accuracy of a company's financial statements

Opinion

Regulatory body that requieres audits of all publicly traded companies

Securities and exchange commission

The system that maintains records of a company's operations and then communicates that information to decision makers is referred to as

accounting

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

balance sheet

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

cash receipts and cash disbursements during a period.

To be useful for decision making, information should possess the fundamental qualities of relevance and ___representaton

faithful

is the common abbreviation for the Board that currently establishes financial accounting and reporting standards in the U.S

fasb

Statements represent a company's primary means of communicating information to external users.

financial

Which financial statement reports revenues and expenses?

income statement

The accounting equation is: Assets = ______ + Stockholders' Equity.

liabilities

An income statement reports

net income or loss revenues expenses

The two sources of stockholders' equity are amounts

paid in from shareholders earned by the corporation

Undistributed profits that have accumulated in the company over time are called _____earnings

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 are attributes of FASB?

Full-time board members Independence Private sector organization

Auditors are not employees of the company they audit they are

Independent

The primary functions of accounting are to:

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

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

communicate information to investors and creditors. measure business activities.

Stockholders' equity arises primarily from amounts invested by shareholders and amounts

earned by the corporation

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

corporation

net loss _____ retained earnings

decreases

Retained earnings represents

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

Which of the following are financial statements?

Statement of stockholders' equity Income statement Balance sheet statement of cash flow

Information that best explains companies' stock price performance is reported on the .

income statement

Party that reports on wether a company's financial statements are in accordance with GAAP

Auditor

Which of the following knowledge and skills should an accounting professional possess?

Presentation skills Ability to work in teams Technical accounting knowledge Leadership skills

Companies communicate information about their business activities primarily through

financial statements