Accounting chapter 1 extra credit - Final Review

what is included in a financial statement?

Statement of stockholders' equity, income statement, balance sheet, statement of assets

Four Financial Statements

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

The basic ____ ____ is referred to as the fundamental model of business valuation.

accounting equation

how do you calculate retained earnings?

all income - all dividends

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

annual report

which account will be on a statement of stockholders' equity?

common stock

A(n) _____ is a distribution of net income to the stockholders of a corporation

dividend or dividends

The two sources of stockholders' equity are amounts______

earned by the corporation, paid in from shareholders

____ _____ represent a company's primary means of communicating information to external users

financial statements

In financial accounting which of the following are the three types of business activities of a company?

financing, investing, operating

when revenues are greater than expenses, a company has net ___, when revenues are less than expense, a company has net ____

gain,loss

The financial statement that summarizes revenues and expenses for a period of time is the _____ _____

income statement

what financial statement records revenues and expenses?

income statement

two main functions of accounting

measure business activities; communicate info to creditors and investors

revenues - expenses =

net income

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

net income of $5,000

an income statement includes:

net income, expenses, revenues, cash

What appears on the statement of stockholders' equity?

net income, retained earnings, dividends

when expenses are greater than revenue

net loss

whats found on a company's balance sheet?

notes payable, accounts receivable, equipment

______ activities involve involve purchasing goods from suppliers, designing and manufacturing products, and selling products to customers.

operating

Which of the following are operating activities?

providing service to customers,paying ad expenses, paying employee salaries

Audit, tax preparation and planning, and business consulting services are typically provided by ______ professionals.

public accounting

Revenues are:

sales of goods and services to customers

Expenses are:

the costs of doing business that are necessary to produce revenue

which of the following items are reported as a liability on the balance sheet?

wages and salaries payable, note payable