Chapter 1 Homework

The two main functions of ______ are to (1) measure business activities and (2) to communicate those measurements to

Accounting

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

Accounts receivable Common stock Utilities payable

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

Accounts receivable Notes payable Equipment

Accounting Equation

Assets = Liabilities + Owner's/ Stockholder Equity

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

Beginning balance of retained earnings Net income Dividends

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

Common Stock Utilities Accounts receivable

The two sources of stockholders' equity are amount

Earned by the corporation Paid in from shareholders

When revenues are greater than expenses, a company has net ______________ , whereas when revenues are less than expenses, a company has a net ______________________ .

Income Loss

Which of the following are financial statements

Income statement, statement of stockholders' equity, and balance sheet.

Pizza Aroma generated $11,000 in revenues and had expenses of $6,000. Pizza Aroma's net income or loss is

Net Income 5,000

Which of the following line items appear on an income statement?

Revenues Supplies expense

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

accounting

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

assets, liabilities, stockholders equity

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

balance sheet

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

balance sheet

Ending retained earnings is calculated as

beginning retained earnings + net income - dividends

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

cash receipts and cash disbursements during a period.

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

communicate information to investors and creditors. 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

____________ 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

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

financing activities, investing activities, operating activities

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

income statement

The financial statement that reports the company's revenues and expenses over an interval of time is the

income statement

Which financial statement reports revenues and expenses?

income statement

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

income statement, statement of stockholders' equity, balance sheet, statement of cash flows

A balance sheet lists the assets ____ and stockholders' equity as of a specific date

liabilities

If revenues are less than expenses , a company has

net loss

The statement of cash flows classifies items as

operating, investing, financing

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

provides limited liability to stockholders.

The two main career paths in accounting are referred to as

public and private

Profits earned by a company that have not been paid to stockholders are called

retained earnings

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

retained earnings

Which of the following represents the net income earned by a corporation and not yet paid to shareholders?

retained earnings

An income statement includes which of the following items

revenues, expenses, net income

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

statement of cash flows