CH 1: Defining Accounting

Which of the following are characteristics of all balance sheet accounts

Balances are carried forward from period to period, Accounts are referred to as permanent

Which of the following accounts should be classified as stockholders equity

Common stock, retained earnings

Under the cash basis of accounting

Expenses are recorded when cash is paid, revenues are recorded when cash is received

Which of the following statement regarding the statements of cash flows are correct

Reports cash disbursements, reports cash receipts, the final financial statement that is typically prepared

Which financial statement would report all of the following information: Beginning balances for common stock and retained earnings; current period net income or loss; current period dividends; common stock issued during the year; ending balances of common stock and retained earnings

Statement of stockholders equity

Total assets=

Total Liabilities + Shareholder's Equity

A classified balance sheet shows subtotals for current ____ and current ___

assets & liabilities

Retained Earnings

assets+ net income- dividend

Reporting revenues only when cash is received and expenses only when cash is paid is called the ________ basis of accounting

cash

Which of the following expressions currently calculated "total assets:

current assets plus long-term assets

The statement of stockholder's equity includes these amounts

dividends for the period, ending balance retained earnings, net income

An income statement reports

expenses, revenues,

The information reported in the statement of cash flows is organized by these activities

financing, operating, investing

Revenues and expenses are reported in the

income statement

An asset that can quickly be turned into cash has the characteristics of

liquidity

With respect to current assets, ____ refers to how quickly an asset can be converted to cash

liquidity

On a classified balance sheet, total liabilities represent the sum of ___ and long-term liabilities

short-term

The sum of current and long-term assets on the balance sheet is referred to as

total, assets