ACCT 2301 Chapter One
Match them: 1.balance sheet 2.income statement 3.statement of cash flows a.assets,liabilities, and stockholders' equity b.revenues and expenses c.operating,investing,and financing activities
1-a 2-b 3-c
blank is a term that refers to a code or moral system that provides criteria for evaluating right or wrong
Ethics
blank is the common abbreviation for the Board that establishes financial accounting and reporting standards in the U.S.
FASB
To be useful for decision making, information should possess the fundamental qualities of relevance and blank representaions.
Faithful
Information that best explains companies' stock price performance is reported on the blank blank.
Income statement
The purpose of a statement of cash flows is to provide information about the a.cash receipts and cash disbursements during a period b.income and related expenses during the period c.assets,liabilities,and the stockholders' equity used during the period d.assets used during the period
a.cash receipts and cash disbursements during a period
Companies communicate information about their business activities primarily through a.financial statements b.their tax return c.public relations announcements
a.financial statements
Which of the following represents the net income earned by a corporation and not yet paid to shareholders? a.retained earnings b.additional paid-in capital c.other comprehensive income d.paid-in capital
a.retained earnings
The system that maintains records of a company's operations and then communicates that information to decision makers is referred to as blank
accounting
The two main functions of blank are to (1) measure business activities and (2) to communicate those measurements to investors and creditors
accounting
Which of the following financial statements shows a firm's financial position on a particular date? a.statement of cash flows b.balance sheet c.income statements d.statement of stockholders' equity
b.balance sheet
The form of business organization where an entity is legally separate from its owners and issues shares of stock is a a. partnership b.corporation c.proprietorship
b.corporation
A net loss blank retained earnings. a.increases b.decreases c.has no effect on
b.decreases
The financial statement that is most useful in explaining a company's stock price performance is the a.balance sheet b.income statement c.statement of stockholders' equity
b.income statement
The financial statement that is most useful in explaining a company's stock price performance is the a.statement of stockholders' equity b.income statement c.balance sheet
b.income statement
The statement of cash flows classifies items as a.recurring and nonrecurring b.operating,investing,and financing c.operating and nonoperating d.current and no.current
b.operating,investing, and financing
The financial statement that displays a firm's financial position on a particular date is the blank blank.
balance sheet
Which of the following are financial statements? balance sheet/statement of assets/statement of stockholders' equity/statement of corporate responsibility/income statement
balance sheet/statement of stockholders' equity/income statement
Stockholder's equity arises primarily from amounts invested by shareholders and amounts a.borrowed from investors b.received by customers c.earned by the corporation d.borrowed from banks
c.earned by the corporation
The financial statement that summarizes the profit-generating activities of a company during a particular period of time is the a.statement of stockholders' equity b.balance sheet c.income statement d.statement of cash flows
c.income statement
The accounting equations is: Assets= blank+stockholders' equity a.revenues b.expenses c.liabilities d.dividends
c.liabilities
The financial statement the provides information about cash receipts and cash disbursements for the period is the a.statement of retained earnings b.balance sheet c.statement of cash flows d.income statements
c.statement of cash flows
Which of the following appears on the balance sheet? net income/salaries expense/common stock/accounts receivable/utilities payable
common stock/accounts receivable/utilities/payable
A business organization that is a legally separate from its owners is called a(n)
corporation
A code or moral system that provides criteria for evaluating right and wrong is referred to as a.a values model b.standards c.a dilemma system d.ethics
d.ethics
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 a.materiality and consistency b.cost and benefit c.neutrality and materiality d.relevance and faithful representations
d.relevance and faithful representations
Which of the following appear on the statement of stockholders' equity? dividends/beginning balance of retained earnings/cash received during the accounting period/property,plant,and equipment/net income
dividends/beginning balance of retained earnings/net income
Salaries already paid to employees for the month is a(n) blank account that appears on the blank a.revenue;balance sheet b.liability;income statement c.revenue;income statment d.liability;balance sheet e.expense;income sheet
e.expense;income statement
The accounting equation is: Assets=Liabilities+ a.net income b.revenues c.creditors' interest d.retained earnings e.stockholders' equity
e.stockholders' equity
Blank blank represent a company's primary means of communicating information to external users.
financial statements
The three classifications on the statement of cash flows from financing activities/operating activities/discontinued activities/business activities/investing activities
financing activities/operating activities/investing activities
The financial statement that summarizes revenues and expenses for a period of time is the blank blank
income statement
The four financial statements published to provide information to external users include which of the following? income statement/statement o business activities/balance sheet/statement of cash flows/statement of assets/statement of stockholders equity
income statement/balance sheet/statement of cash flows/statement of stockholders equity
A balance sheet lists the assets, blank, and stockholders' equity as a specific date.
liabilities
In our society, the two main functions of accounting are to measure business activities/communicate information to investors and creditors/report net income to tax authorities/report activities to government regulators
measure business activities/communicate information to investors and creditors
Which of these would be found on a company's balance sheet? sales revenue/depreciation expense/notes payable/accounts receivable/equipment
notes payable/accounts receivable/equipment
Which of the following are attributes of FASB? part-time board members/private sector organization/full-time board members/independence/public sector organization
private sector organization/full-time board members/independence
Profits earned by a company that have not been paid to stockholders are called blank earnings.
retained
Undistributed profits that have accumulated in the company over time are called blank earnings.
retained
Which of the following items are found on a balance sheet? revenue/dividends/stockholders' equity/assets/liabilities
stockholders' equity/assets/liabilities
