ACG 2021 CH. 1

Gilkey Corporation began the year with retained earnings of $465,000. During the year, the company issued $630,000 of common stock, recorded expenses of $1,800,000, and paid dividends of $120,000. If Gilkey's ending retained earnings was $495,000, what was the company's revenue for the year? A) $1,950,000 B) $2,460,000 C) $1,185,000 D) $2,580,000 E) $1,830,000

A) $1,950,000

If total liabilities decreased by $15,000 and total stockholders' equity increased by $5,000 during a period of time, then total assets must have changed by what amount and direction during that same period? A) $10,000 decrease B) $20,000 increase C) $15,000 decrease D) $20,000 decrease E) $10,000 increase

A) $10,000 decrease The accounting equation: Assets = Liabilities + Stockholders' Equity If liabilities decreased by $15,000 and stockholders' equity increased by $5,000 then the right side of the accounting equation decreased by $10,000. Therefore, assets must have decreased by $10,000 to keep the accounting equation in balance [i.e., ($15,000) + $5,000 = ($10,000)].

At the end of the year, Stoneland Corporation has assets of $6,500 and liabilities of $4,500. How much is the company's equity at the end of the year? A) $2,000 B) $4,500 C) $4,000 D) $8,500 E) $1,000

A) $2,000

Chris's Maid Service began the year with total liabilities of $100,000 and stockholders' equity of $40,000. During the year the company earned $110,000 in net income and paid $5,000 in dividends. Total liabilities at the end of the year were $240,000. How much are total assets at the end of the year? A) $385,000 B) $345,000 C) $95,000 D) $110,000 E) $335,000

A) $385,000 First, determine the ending balance of stockholders' equity. Ending stockholders' equity = beginning stockholders' equity + net income - dividends. Ending stockholders' equity = $40,000 + 110,000 - 5,000 = $145,000. Second, determine total liabilities. Assets = Liabilities + Stockholders' equity Assets = $240,000 + 145,000 Assets = $385,000

The financial records for Harold Corporation included the following information: Accounts receivable, $55,000 Accounts payable, $20,000 Cash, $25,000 Common stock, $25,000 Dividends, $15,000 Sales revenue, $90,000 Salaries and wages expense, $30,000 Supplies expense, $10,000 Based on this information, how much was its net income? A) $50,000 B) $65,000 C) $55,000 D) $80,000 E) $35,000

A) $50,000 Net income equals the revenues earned during the year minus the expenses incurred during the year. Use the balances of the revenue and expense accounts to measure revenues and expenses. Net income = Revenue - expenses Net income = $90,000 - 30,000 - 10,000 = $50,000

Jeremiah Company recorded the following cash transactions for the year: Collected $460,000 from customers Collected $50,000 from lenders Paid $10,000 to purchase office equipment. Paid $140,000 for salaries. Paid $20,000 in dividends. Paid $260,000 of goods and services What was the company's net cash provided by operating activities for the year? A) $60,000 B) $50,000 C) $300,000 D) $200,000 E) $40,000

A) $60,000

Which of the following would appear on a balance sheet? A) Accounts receivable B) Interest expense C) Service revenue D) Net income E) Dividends

A) Accounts receivable

Which of the following is an expense? A) Cost of goods sold B) Wages payable C) Accounts receivable D) All of these E) Dividends

A) Cost of goods sold

Which of the following is true with regards to dividends? A) Dividends represent a portion of corporate profits that are paid to the shareholders. B) None of these. C) Dividends are listed on the balance sheet as a deduction from retained earnings. D) Dividends should be shown on the balance sheet as assets. E) Dividends are a cost of generating revenues and that makes them an expense.

A) Dividends represent a portion of corporate profits that are paid to the shareholders.

On which financial statement would you find revenues and expenses? A) Income Statement B) Statement of Retained Earnings C) Balance Sheet D) Statement of Cash Flows

A) Income Statement

Which of the following statement is NOT impacted in the payment of cash dividends? A) Income Statement B) Statement of retained earnings C) Balance Sheet D) Statement of Cash Flows

A) Income Statement

What are the two primary sources of funds for corporations? A) Investors & creditors B) CPAs & CEOs C) Banks & creditors D) Family & friends

A) Investors & creditors

What type of account or account classification is Accounts Payable? A) Liability B) Expense C) Asset D) Revenue E) Equity

A) Liability

Which section of the annual report presents highlights of favorable or unfavorable trends and identifies significant events and uncertainties affecting a company's ability to pay near-term obligations, and a company's ability to fund operations and expansion? A) Management discussion and analysis B) Financial statements C) Auditor's report D) Notes to the financial statements E) Retained earnings statement.

A) Management discussion and analysis

Which of the following best describes stockholders' equity? A) Stockholders' equity are the claims of owners. B) Stockholders' equity are the claims of creditors. C) Stockholders' equity are the economic resources of the firm. D) Stockholders' equity is the cash collected from owners. E) Stockholders' equity is the difference between revenues and expenses.

A) Stockholders' equity are the claims of owners.

The payment of dividends is an example of A) a financing activity. B) a delivery activity. C) an operating activity. D) a merchandising activity. E) an investing activity.

A) a financing activity.

Resources owned by a business are referred to as A) assets. B) expenses. C) revenues. D) stockholders' equity. E) liabilities.

A) assets.

The sole proprietorship form of business organization A) generally receives favorable tax treatment relative to a corporation. B) All of these are true. C) is the type of entity that can easily raise large amounts of funds. D) puts control of the business into the hands of a professional manager. E) must have at least two owners.

A) generally receives favorable tax treatment relative to a corporation.

In which forms of business organization are the owners personally liable for the debts of the business? A)Sole proprietorships and partnerships B)Partnerships and corporations C)Only sole proprietorships D)Sole proprietorships and corporations E)Only corporations

A)Sole proprietorships and partnerships

Chris's Maid Service began the year with total assets of $125,000 and stockholders' equity of $40,000. During the year the company earned $90,000 in net income and paid $20,000 in dividends. Total assets at the end of the year were $215,000. How much are total liabilities at the end of the year? A) $90,000 B) $105,000 C) $95,000 D) $110,000 E) $80,000

B) $105,000 First, determine the ending balance of stockholders' equity. Ending stockholders' equity = beginning stockholders' equity + net income - dividends. Ending stockholders' equity = $40,000 + 90,000 - 20,000 = $110,000. Second, determine total liabilities (i.e., Assets = Liabilities + Stockholders' equity) Liabilities = $215,000 - 110,000 = $105,000.

Jeremiah Company recorded the following cash transactions for the year: Collected $350,000 from customers Collected $40,000 from lenders Paid $20,000 to purchase office equipment. Paid $100,000 for salaries. Paid $10,000 in dividends. Paid $80,000 of goods and services What was the company's net cash provided by operating activities for the year? A) $140,000 B) $170,000 C) $160,000 D) $250,000 E) $270,000

B) $170,000 A company's activities are divided into three categories: (1) operating activities, (2) investing activities, and (3) financing activities. Operating activities include selling products and/or services, paying suppliers (e.g., buying inventory), employees workers, etc. Cash flows from operating activities are increases by collecting cash for operating activities (e.g., collecting cas from customers) and decreased by paying cash for operating activities (e.g., paying cash to employees for hours worked, paying cash to suppliers for inventory, etc.). This company's net cash provided by operating activities include (i) cash collected from customers, (ii) salaries paid for salaries, and (iii) cash paid for goods and services Net cash flow provided by operating activities = $350,000 - 100,000 - 80,000 = $170,000

Jeremiah Company recorded the following cash transactions for the year: Collected $80,000 from lenders Collected $260,000 from customers Paid $130,000 for salaries. Paid $10,000 in dividends. Paid $90,000 of goods and services Paid $20,000 to purchase office equipment. What was the company's net cash provided by operating activities for the year? A) $30,000 B) $40,000 C) $10,000 D) $90,000 E) $20,000

B) $40,000 Net cash flow provided by operating activities = $260,000 - 130,000 - 90,000 = $40,000

At the end of the year, Stoneland Corporation has liabilities of $2,000 and equity of $3,000. How much are the company's assets at the end of the year? A) $0 B) $5,000 C) $1,000 D) $4,000 E) $7,000

B) $5,000 Assets = Liabilities + Equity Assets = $2,000 + 3,000 = $5,000.

Which of the following questions is important to internal users of a company's accounting information? A) What selling price for our product will maximize the company's net income? B) All of these C) None of these D) Is cash sufficient to pay dividends to stockholders? Which product line is most profitable?

B) All of these

How would issuing stock affect the financial statements? A) Assets decrease B) Cash increases C) Common stock decreases D) All of the above

B) Cash increases

Which of the following is not one of the three primary business activities listed on the statement of cash flows? A) All of these are activities listed on the statement of cash flows B) Merchandising activities C) Investing activities D) Financing activities E) Operating activities

B) Merchandising activities

In which of the following sequences are these financial statements usually prepared? A) All of these B) None of these C) The balance sheet is prepared before the inncome statement. D) The balance sheet is prepared before the retained earnings statement. E) The retained earnings statement is prepared before the income statement.

B) None of these

Which of the following best describes stockholders' equity? A) Stockholders' equity are the claims of creditors. B) Stockholders' equity are the claims of owners. C) Stockholders' equity are the economic resources of the firm. D) Stockholders' equity is the cash collected from owners. E) Stockholders' equity is the difference between revenues and expenses.

B) Stockholders' equity are the claims of owners.

What section of a cash flows statement shows the amount of cash collected from customers during the most recent accounting period? A) The property section B) The operating section C) The expense section D) The financing section E) The investing section

B) The operating section

In which of the following sequences are these financial statements usually prepared? A) The finncial statements are independent and the order they are prepared is not important. B) The retained earnings statement is prepared before the balance sheet. C) The balance sheet is prepared before the income statement D) All of these E) None of these

B) The retained earnings statement is prepared before the balance sheet.

An annual report includes all of the following except A) an auditor's report. B) a listing of all of the stockholders. C) an income statement. D) a management discussion and analysis section. E) notes to the financial statements.

B) a listing of all of the stockholders.

A company paying cash to purchase equipment to be used in its business is an example of A) an operating activity. B) an investing activity. C) a financing activity. D) an posting activity. E) None of these

B) an investing activity.

The payment of cash to purchase a truck to be used by a company as a delivery truck is an example of A) All of these B) an investing activity. C) an operating activity. D) a delivery activity. E) a financing activity.

B) an investing activity.

A company should report cash paid to its employees as wages on its statement of cash flows as A) a marketing activity. B) an operating activity. C) a financing activity. D) an investment activity. E) a director activity.

B) an operating activity.

The segment of the annual report that presents an opinion regarding the fairness of the presentation of the financial position and results of operations is/are the A) management discussion and analysis. B) auditor's opinion. C) income statement. D) financial statements. E) balance sheet.

B) auditor's opinion.

Which of the following is the most appropriate definition of accounting information? A)Electronic collection and organization of vast amounts of financial information B)The information system that identifies, records, and communicates the economic events of an organization to interested users C)All of these D)The interconnected network of subsystems necessary to operate a business E)A means of collecting business information

B)The information system that identifies, records, and communicates the economic events of an organization to interested users

Joe's Repair Shop started the year with total assets of $200,000 and total liabilities of $160,000. During the year the business recorded $420,000 in revenues, $220,000 in expenses, and dividends of $40,000. It also issued $10,000 of additional stock to its shareholders. What is the stockholders' equity at the end of the year? A) $250,000 B) $200,000 C) $210,000 D) $170,000 E) $140,000

C) $210,000 The basic accounting equation is: Assets = Liabilities + Stockholders' equity At the start of the year, stockholders' equity is $40,000 (i.e., equity = assets - liabilities = 200,000 - 160,000 = 40,000). During the year equity increased by revenues, decreased by expenses, decreased by dividends, and increased by additional stock issued. Equity increased from $40,000 to $210,000 (i.e., $40,000 + 420,000 - 220,000 - 40,000 + 10,000 = 210,000).

Chris's Maid Service began the year with total liabilities of $120,000 and stockholders' equity of $40,000. During the year the company earned $120,000 in net income and paid $15,000 in dividends. Total liabilities at the end of the year were $225,000. How much are total assets at the end of the year? A) $90,000 B) $335,000 C) $370,000 D) $105,000 E) $380,000

C) $370,000 First, determine the ending balance of stockholders' equity. Ending stockholders' equity = beginning stockholders' equity + net income - dividends. Ending stockholders' equity = $40,000 + 120,000 - 15,000 = $145,000. Second, determine total liabilities. Assets = Liabilities + Stockholders' equity Assets = $225,000 + 145,000 Assets = $370,000

Borrowing money from a bank would be considered? A) An operating activity on statement of cash flow B) An investing acivity on the statement of cash flows C) A financing activity on the statement of cash flows D) An income statement activity, not a cash flow activity

C) A financing activity on the statement of cash flows

When expenses exceed revenues, which of the following is true? A) Equity is increased B) Assets are increased C) A net loss results D) Assets equal liabilities E) Liabilities are increased

C) A net loss results

On which financial statement would you find assets, liabilites, & stockholders equity? A) Income Statement B) Statement of Retained Earnings C) Balance Sheet D) Statement of Cash Flows

C) Balance Sheet

Which of the following statemetns does NOT cover a period of time? A) Income Statement B) Statement of Retained Earnings C) Balance Sheet D) Statement of Cash Flows

C) Balance Sheet

Which of the following is an asset? A) Accounts Payable B) Retained Earnings C) Cash D) Notes Payable E) Common Stock

C) Cash

Which of the following is not a liability? A) Accounts Payable B) Notes Payable C) Cost of Goods Sold D) Interest Payable E) All of these are liabilities

C) Cost of Goods Sold

What account affects the Statement of Retained Earnings but does not affect the Income Statement? A) Revenues B) Expenses C) Dividends D) All of the above

C) Dividends

Which of the following is an asset? A) Retained earnings B) Dividends C) Inventory D) Interest expense E) Notes payable

C) Inventory

In which forms of business organization are the owners personally liable for the debts of the business? A) Only sole proprietorships B) Sole proprietorships and corporations C) Sole proprietorships and partnerships D) Partnerships and corporations E) Only corporations

C) Sole proprietorships and partnerships

Which of the following best describes stockholders' equity? A) Stockholders' equity is the difference between revenues and expenses. B) Stockholders' equity is the cash collected from owners. C) Stockholders' equity are the claims of owners. D) Stockholders' equity are the claims of creditors. E) Stockholders' equity are the economic resources of the firm.

C) Stockholders' equity are the claims of owners.

Which of the following is the most appropriate definition of accounting information? A) The interconnected network of subsystems necessary to operate a business B) All of these C) The information system that identifies, records, and communicates the economic events of an organization to interested users D) Electronic collection and organization of vast amounts of financial information E)A means of collecting business information

C) The information system that identifies, records, and communicates the economic events of an organization to interested users

Collecting cash from customers is an example of a cash flow from A) investing activities. B) All of these C) operating activities. D) financing activities. E) delivery activities.

C) operating activities.

Net income will result during a time period when A) assets exceed revenues. B) assets exceed liabilities. C) revenues exceed expenses. D) expenses exceed revenues. E) assets exceed equity.

C) revenues exceed expenses.

Given the following information, Sales Revenue $25,000 Service Revenue $12,000 Cash $14,000 Accounts Receivable $21,000 Accounts Payable $13,000 Salaries Expense $20,000 Rent Expense $5,000 What is the corporation's net income/loss? A)Net income $26,000 B)Net loss $1,000 C)Net Income $12,000 D)Net loss $13,000

C)Net Income $12,000

Which of the following would appear on an income statement? A) Cash B)Accounts payable C)Service revenue D)Retained earnings E) Net cash flows from operations

C)Service revenue

If total assets decreased by $10,000 and total stockholders' equity increased by $5,000 during a period of time, then total liabilities must have changed by what amount and direction during that same period? A) $5,000 decrease B) $15,000 increase C) $10,000 increase D) $15,000 decrease E) $5,000 increase

D) $15,000 decrease

A company began the year with total liabilities of $100,000 and stockholders' equity of $25,000. During the year, the company had net income of $250,000 and paid its shareholders $50,000. Total liabilities at the end of the year was $58,000. What is the total amount of assets at the end of the year? A) $125,000 B) $225,000 C) $238,000 D) $283,000

D) $283,000

Henson Company began the year with retained earnings of $330,000. During the year, the company issued $20,000 of additional common stock, recorded revenues of $500,000, recorded expenses of $380,000, and paid dividends of $40,000. What was Henson's retained earnings at the end of the year? A) $430,000 B) $490,000 C) $450,000 D) $410,000 E) $790,000

D) $410,000

The financial records for Harold Corporation included the following information: Accounts receivable, $60,000 Accounts payable, $20,000 Cash, $25,000 Common stock, $10,000 Dividends, $10,000 Insurance expense, $5,000 Salaries and wages expense, $50,000 Sales revenue, $120,000 Based on this information, how much was its net income? A) $70,000 B) $75,000 C) $55,000 D) $65,000 E) $140,000

D) $65,000 Net income equals the revenues earned during the year minus the expenses incurred during the year. Use the balances of the revenue and expense accounts to measure revenues and expenses. Net income = Revenue - expenses Net income = $120,000 - 50,000 - 5,000 = $65,000

The financial records for Harold Corporation included the following information: Accounts receivable, $60,000 Accounts payable, $25,000 Cash, $15,000 Common stock, $5,000 Dividends, $10,000 Insurance expense, $10,000 Sales revenue, $90,000 Salaries and wages expense, $25,000 Based on this information, how much was its net income? A) $80,000 B) $55,000 C) $65,000 D) $70,000 E) $45,000

D) $70,000 Net income equals the revenues earned during the year minus the expenses incurred during the year. Use the balances of the revenue and expense accounts to measure revenues and expenses. Net income = Revenue - expenses Net income = $90,000 - 25,000 - 10,000 = $55,000

Which of the following is not an asset? A) Revenue B) Cash C) Supplies D) Accounts receivable E) Inventory

D) Accounts receivable

Which of the following questions tends to be important to external users of a company's accounting information? A) What selling price for our product will maximize the company's net income? B) Which product line is most profitable? C) All of these are equally important to external users. Correct! D) How does the company's profitability compare to its competitors? E) Can the company afford to give its employees a raise this year?

D) How does the company's profitability compare to its competitors?

Which of the following is also referred to as debt? A) Assets B) Expenses C) Revenues D) Liabilities E) Stockholders' equity

D) Liabilities

On which financial statement would you find activities involving operating, investing, & financing? A) Income Statement B) Statement of Retained Earnings C) Balance Sheet D) Statement of Cash Flows

D) Statement of Cash Flows

If total liabilities increased by $4,000 and total assets decreased by $6,000, then A) Stockholders' equity increased by $2,000 B) Stockholders' equity decreased by $2,000 C) Stockholders' equity increased by $10,000 D) Stockholders' equity decreased by $10,000

D) Stockholders' equity decreased by $10,000

Which of the following did not result from the Sarbanes-Oxley Act (SOX)? A) Top management must now certify the accuracy of financial information. B) The independence of outside auditors increased. C) Penalties for fraudulent activity increased. D) Tax rates on corporations increased. E) The Sarbanes-Oxley Act caused all of these to occur.

D) Tax rates on corporations increased.

A company should report an issuance of common stock on its statement of cash flows as A) a marketing activity. B) an investing activity. C) a budgeting activity. D) a financing activity. E) an operating activity.

D) a financing activity.

When the auditor is satisfied that the financial statements provide a fair representation of the company's financial position and results of operation in accordance with generally accepted accounting principles, the auditor will express A) a disclaimer of opinion. B) a qualified opinion. C) an adverse opinion. D) an unqualified opinion. E) a certified opinion.

D) an unqualified opinion.

The segment of a corporation's annual report that describes the corporation's accounting methods is the A) income statement. B) balance sheet. C) management discussion and analysis. D) notes to the financial statements. E) auditor's report.

D) notes to the financial statements.

The retained earnings statement A) presents the revenues and expenses for a specific period of time. B) reports the changes in assets, liabilities, and stockholders' equity over a period of time. C)is prepared before preparing the income statement. D) reports both the net income and dividends for a specific period of time. E) reports the assets, liabilities, and stockholders' equity at a specific date.

D) reports both the net income and dividends for a specific period of time.

The balance sheet A) summarizes the cash inflows and cash outflows for a period of time partitioned into operating, investing, and financing activities. B) reports the amounts and causes of changes in retained earnings for a specific period of time such as a year. C) presents the revenues and expenses for a specific period of time. D) reports the assets, liabilities, and stockholders' equity at a specific date. E) reports the changes in assets, liabilities, and stockholders' equity over a period of time.

D) reports the assets, liabilities, and stockholders' equity at a specific date.

If total liabilities decreased by $15,000 and total stockholders' equity increased by $5,000 during a period of time, then total assets must have changed by what amount and direction during that same period? A) $10,000 increase B) $20,000 increase C) $20,000 decrease D) $15,000 decrease E) $10,000 decrease

E) $10,000 decrease The accounting equation: Assets = Liabilities + Stockholders' Equity If liabilities decreased by $15,000 and stockholders' equity increased by $5,000 then the right side of the accounting equation decreased by $10,000. Therefore, assets must have decreased by $10,000 to keep the accounting equation in balance [i.e., ($15,000) + $5,000 = ($10,000)].

At the end of the year, Stoneland Corporation has liabilities of $3,500 and equity of $2,000. How much are the company's assets at the end of the year? A) $7,500 B) $1,000 C) $4,000 D) $0 E) $5,500

E) $5,500 Assets = Liabilities + Equity Assets = $3,500 + 2,000 = $5,500.

Which financial statement reports assets, liabilities, and stockholders' equity as of a given date? A) Income statement. B) None of these C) Retained earnings statement. D) Statement of cash flows. E) Balance sheet.

E) Balance sheet.

Which of the following is considered to be an external user of accounting information? A) Vice president of marketing B) Finance personnel C) Company officers (e.g., Company president) D) Human resource manager E) Investors

E) Investors

Which of the following is also referred to as debt? A) Revenues B) Assets C) Stockholders' equity D) Expenses E) Liabilities

E) Liabilities

In which of the following sequences are these financial statements usually prepared? A) The balance sheet is prepared before the retained earnings statement. B) The retained earnings statement is prepared before the income statement. C) All of these D) The balance sheet is prepared before the inncome statement. E) None of these

E) None of these

Collecting cash from customers is an example of a cash flow from A) investing activities. B) All of these C) Financing activities. D) Delivery activities. E) Operating activities.

E) Operating activities.

Which of the following would not appear on a retained earnings statement? A) Dividends B) Net income C) The ending retained earnings balance D) The beginning retained earnings balance E) Service revenue

E) Service revenue

Which of the following would not appear on a retained earnings statement? A) Dividends B) The beginning retained earnings balance C) Net income D) The ending retained earnings balance E) Service revenue

E) Service revenue

Which of the following is comprised of two parts: (1) common stock and (2) retained earnings? A) Revenues B) Expenses C) Assets D) Liabilities E) Stockholders' equity

E) Stockholders' equity

Which of the following is the most appropriate definition of accounting information? A) A means of collecting business information B) Electronic collection and organization of vast amounts of financial information C) All of these D) The interconnected network of subsystems necessary to operate a business E) The information system that identifies, records, and communicates the economic events of an organization to interested users

E) The information system that identifies, records, and communicates the economic events of an organization to interested users

Which of the following is required as a result of the Sarbanes-Oxley Act (SOX) passed into law in 2002? A) All shareholders now have an oversight role of the company's financial activities. B) None of these C) Public companies must prepare audited financial statements. D) Companies that go bankrupt must repay shareholders for lost investments. E) Top management must certify the financial statements for their company.

E) Top management must certify the financial statements for their company.

Which of the following is required as a result of the Sarbanes-Oxley Act (SOX) passed into law in 2002? A) Companies that go bankrupt must repay shareholders for lost investments. B) Public companies must prepare audited financial statements. C) All shareholders now have an oversight role of the company's financial activities. D) None of these E) Top management must certify the financial statements for their company.

E) Top management must certify the financial statements for their company.

A company buying shares of stock in another company is an example of A) None of these B) an posting activity. C) an operating activity. D) a financing activity. E) an investing activity.

E) an investing activity.

Paying cash to buy stocks or bonds of another company is an example of A) a capital activity. B) a merchandising activity. C) a financing activity. D) an operating activity. E) an investing activity.

E) an investing activity.

A company paying cash to its suppliers for inventory to be sold to its customers is an example of A) an advertising activity. B) a financing activity. C) None of these D) an investing activity. E) an operating activity.

E) an operating activity.

The segment of the annual report that presents an opinion regarding the fairness of the presentation of the financial position and results of operations is/are the A) management discussion and analysis. B) financial statements. C) income statement. D) balance sheet. E) auditor's opinion.

E) auditor's opinion.

The balance sheet A) reports the amounts and causes of changes in retained earnings for a specific period of time such as a year. B) reports the changes in assets, liabilities, and stockholders' equity over a period of time. C) summarizes the cash inflows and cash outflows for a period of time partitioned into operating, investing, and financing activities. D) presents the revenues and expenses for a specific period of time. E) reports the assets, liabilities, and stockholders' equity at a specific date.

E) reports the assets, liabilities, and stockholders' equity at a specific date.