ACCT 201 Final Exam
Which of the following appears on a balance sheet?
Accounts receivable; utilities payable; common stock
Which of the following are found On a balance sheet?
Assets, liabilities, stockholders' equity
The 4 financial statements published to provide information to external users include which of the following?
Balance sheet, income statement, statement of stock holders equity, statement of cash flows
Which of the following accounts is on the statement of stockholders equity?
Common stock
Which of the following are stockholders equity accounts?
Common stock; retained earnings
The two primary functions of financial accounting are to:
Communicate measurements to external parties; measure business activities
The form of business organization where an entity is legally separate from its owners and issues shares of stock is a:
Corporation
Which of the following appear on the Statement of stockholders equity?
Dividends; net incomes; beginning balance of retained earnings
The 2 sources of stockholders equity are amounts:
Earned by the corporation; paid from shareholders
The private sector organization that is currently responsible for setting accounting standards in the United States in the
Financial Accounting Standards Board (FASB)
Which financial statement reports revenues and expenses?
Income statement
Assets =
Liabilities + Stockholders' Equity
(Blank) accounting deals with the concepts and methods used to provide information to an organizations internal users
Managerial
Pizza aroma generated $11,000 in revenues and had expenses of $6,000. Pizza aroma's net income/lost is?
Net income of $5,000
An income statement reports:
Net income/loss, expenses, revenue
Which of the following are financial statements?
Statement of stockholders equity; income statement; balance sheet
Which financial statements shows the changes in common stock and retained earnings?
Statement of stockholders' equity
The heading of an income statement should include what?
The accounting period covered by the statement; the name of the business; the title of the financial statement
Retained earnings represents
The total net income earned over the life of the company that has not been distributed as dividends
What are limited liability companies (LLCs)?
a company where owners are called members, but the members are not personally liable for busin
The two main functions of ______ are to (1) measure business activities and (2) to communicate those measurements to investors and creditors.
accounting
management discussion, analysis, and note disclosures to the financial statements are included in the _________ __________ (2 words)
annual report
The financial statement that displays a firm's financial position on a particular date is the (blank) (blank)
balance sheet
What does private accounting primarily provide to society?
budgeting; information systems design; cost accounting; internal auditing
How do we define a proprietorship?
business has a single owner that is legally not separate from owner and the owner is personally liable for business debts
How do we define a partnership?
business has two or more owners and each owner is personally liable for the business debts
In our society, the two main functions of accounting are to
communicate information to investors and creditors; measure business activities
What does public accounting primarily provide to society?
consulting; assurance services (auditing); tax accounting
Financial accounting provides information for ________ this can includes people such as _________
external users; investors, bankers, and government agencies
(Blank) statements represent a company's primary means of communicating information to external users
financial
Companies communicate information about their business activities primarily through
financial statements
Where is the time period covered by the income statement found?
in the heading
The financial statement that is most useful in explaining a company's stock price performance 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
information that best explains companies' stock price performance is reported in the
income statement
When a company earns net income, its retained earnings:
increases
Who are the users of accounting information?
individuals, taxing authorities, investors, creditors, nonprofit organizations
Management accounting provides information for ________ this can include people such as ___________
internal users; managers
Accounting is an information system that:
measures business activities, processes data into reports, and communicates results to decision makers
If revenues are less than expenses, a company has:
net loss
What are the two types of accounting?
private and public
How do we organize the types of business's we have in our world?
proprietorships -> partnerships -> corporations
An advantage of the corporate form of organization is that a corporation
provides limited liability to stockholders.
U.S. companies are required to report _________ and __________ information.
relevant and reliable
Profits earned by a company that has not been paid to stockholders are called?
retained earnings
The accumulated net income earned since the inception of the corporation and not yet paid to shareholders is referred to as (blank) (blanks)
retained earnings
Which of the following appears on the balance sheet: a) salaries expense b) utilities payable c) accounts receivable d) net income e) common stock
utilities payable; accounts receivable; common stock
