Purdue MGMT 200

____________ 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 fundamental activities of a business are:

financing, investing, and operating activities

Where is the time period covered by the income statement found?

in the heading

What does the information in an income statement show about a corporation?

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

The accounting equation is:

Assets = Liabilities + Stockholders' Equity

Which statement reports revenues and expenses?

Income statement

If revenues are less than expenses, a company has:

a net loss

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

accounting

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

accounts receivable notes payable equipment

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

balance sheet

Ending retained earnings is calculated as:

beginning retained earnings + net income - dividends

The two sources of stockholders' equity are amounts:

earned by the corporation; paid in from shareholders

An income statement reports:

expenses net income or loss revenues

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

income statement

The purpose of an __________ ____________ is to report the profit-generating activities of a company over an interval of time

income statement

When a company earns net income, its retained earnings:

increase

The primary functions of accounting are to:

measure a company's activities communicate information to decision makers

The primary functions of accounting are:

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

What appears on the statement of stockholders' equity?

net income dividends beginning balance of retained earnings

In financial accounting, what are the three types of business activities of a company?

operating activities, financing activities, investing activities

The accumulated net income earned since the inception of the corporation and not yet paid to shareholders is referred to as ______________ ______________

retained earnings

The four primary financial statements published to provide information to external users include:

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

The heading of an income statement should include what?

the name of the business the accounting period covered by the statement the title of the financial statement

Retained earnings represent

the total net income earned over the life of the company that has not been distributed as dividends