Acct 2301 chpt 1

Which of the following are financial statements? (Select all that apply.) Multiple select question.

Statement of stockholders' equity Income statement Balance sheet

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

income statement

An income statement reports: (Select all that apply.)

net income or loss revenues expenses

Ending retained earnings is calculated as

beginning retained earnings + net income - dividends

The three classifications on the statement of cash flows are cash flows from

investing activities. financing activities. operating activities

In addition to the financial statements, which of the following must be included in the annual reports?

notes disclosures. management discussion and analysis.

The statement of cash flows classifies items as

operating, investing, and financing.

The three most common forms of business organization are sole proprietorship,________and ________

partnership and corporation

Profits earned by a company that have not been paid to stockholders 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 aspects relate to the information provided in an income statement?

Ability to earn a profit from its operations during the current period

Which of the following are financial statements?

Income statement Statement of stockholders' equity Balance sheet

Which financial statement reports revenues and expenses?

income statement

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

statement of cash flows

4 primary financial statements

1. Income Statement 2. Statement of Stockholders' Equity 3. Balance Sheet 4. Statement of Cash Flows

The four financial statements published to provide information to external users include which of the following?

Statement of Cash Flows Income Statement Balance Sheet Statement of Stockholders' Equity

The accounting equation is: Assets = Liabilities +

Stockholders' Equity

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

accounting

The two main functions of _______are to (1) measure business activities and (2) to communicate those measurements to investors and creditors. (Enter only one word.)

accounting

A code or moral system that provides criteria for evaluating right and wrong is referred to as Multiple choice question.

annual report

Which of the following financial statements shows a firm's financial position on a particular date?

balance sheet

A business organization that is legally separate from its owners is called a(n)

corporation

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

earned by the corporation

The two sources of stockholders' equity are amounts

earned by the corporation paid in from shareholders

Which of the following are attributes of FASB? (Select all that apply.)

exoense, income tax

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

financial

The financial statement that is most useful in explaining a company's stock price performance is the Multiple choice question.

income statement

The financial statement that summarizes revenues and expenses for a period of time is the

income statment

When a company earns net income, its retained earnings

increase

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

liabilities

Identify the three most common forms of business organization.

sole proprietorship, partnership, corporation

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

stockholders' equity , assets, liabilities

Which of the following appear(s) on the balance sheet?

Which of the following appear(s) on the balance sheet?

The financial statement that displays a firm's financial position on a particular date is the . (Enter one word per blank)

balance sheet

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

cash receipts and cash disbursements during a period.

The financial statement that summarizes the profit-generating activities of a company during a particular period of time is the

income statment

The purpose of an income statement is to

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

financial statements

periodic reports published by the company for the purpose of providing information to external users

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

provides limited liability to stockholders

A balance sheet lists the assets,_____ , and stockholders' equity as of a specific date.

liabilities

The primary functions of accounting are to:

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