ACC chapter 1

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?

Notes payable Equipment Accounts receivable

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

Revenues Supplies expense Salaries expense Service revenue

The heading of an income statement should include which of the following?

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

Management discussion and analysis and note disclosures to the financial statements are included in the

annual report

The primary functions of accounting are to:

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

A net loss Blank______ retained earnings.

decreases

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

Salaries already paid to employees for the month is a(n) Blank______ account that appears on the Blank______.

expense, income statement

An income statement reports:

expenses net income or loss revenues

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

in the heading

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

income statement

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

income statement

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

income statement

Financial information that may impact investors' and creditors' decisions is referred to as____________ and must be reported under GAAP

material

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

notes disclosures. management discussion and analysis.

Predictive value and confirmatory value are components of which fundamental qualitative characteristic?

relevance

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

retained earnings

Retained earnings represents

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