Accounting 211

A company started the month with $1,000 of retained earnings. During the month, it had revenue of $5,000 and expenses of $4,500. It also distributed a dividend of $100 to iits stockholders. The company's retained earnings at the end of the period equals $________.

$1,400 Beginning retained earnings + Net income - dividends

Which line items appear on the statement of retained earnings?

-net income -dividends -ending balance of retained earnings

Assets Liabilities Stockholders' equity Revenues Expenses

-Economic resources that will provide future benefit -Creditoros' claims to economic resources -Owners' claims to economic resources -Amounts earned by selling goods and services -Amounts used to generate profits

Select all of the line-items found on a statement of retained earnings for the month ended September 30

-Retained Earnings, Sept. 30 -Subtract: Dividends -Add: Net income -Retained Earnings, Sept. 1

The heading of a balance sheet might include which of the following?

-The name of the business -At December 31, 2018 -The title "balance sheet"

Supplies Supplies expense cash paid for supplies

-balance sheet -income statement -statement of cash flows

Retained earning are _______.

-decreased by dividends -increased by net income

Which of the following statements are true about the balance sheet?

-it reports the assets, liabilities, and stockholders' equity at a point in time -it is sometimes called the statement of financial position -it reports the economic resources and claims on those resources

Which of the following are reported on a balance sheet?

-liabilities -stockholders' equity -retained earnings -cash -assets

Income statement Statement of retained earnings Balance sheet Statement of cash flows

-reports the financial performance of the business during the current accounting period -reports the accumulation of profits kept by the business during the current accounting period with that of prior periods -reports the financial position of the business at a point in time -Reports the operating, investing and financing activities effect on cash

Place the following in order of how they would appear in the heading of Deli Llama's annual income statement for the fiscal year ended March 31, 2017

1. Deli Llama, Inc 2. Income statement 3. For the year ended March 31, 2017

Place the single-step income statement items in the proper order from top to bottom

1. Revenues 2. Expenses 3. Net Income

Which of the following are the correct terms for the 3 activities found on the statement of cash flows?

1. financing 2. operating 3. investing

____ are earned by selling goods or services to customers and is the first line item reported on the income statement

Revenues

Three common forms of business organizations include _______.

Sole proprietorship Partnership Corporation

The balance sheet balances when

assets equal liabilities plus stockholders' equity

A net loss will

decrease retained earnings

Net losses cause retained earnings to ____

decrease

An ____ is a cost of doing business that is necessary to earn ____

expense; revenue

Which financial statement reports revenues and expenses?

income statement

_____ are measurable amounts that the company owes to creditors

liabilites

The statement of retained earnings is

one of the 4 financial statements

The main reason companies exist is to maximize their

profits owners' wealth

The statement of retained earnings reports the _____.

profits that have accumulated in the company over time

Profits that have accumulated in the company over time are _____ earnings.

retained

Which of the following statements are true?

retained earning increases when a company earns and keeps its profit