Ch 1. Financial Accounting

Resources of a company are referred to as: (LO1-2)

. Assets.

Sales of products or services are referred to as: (LO1-2)

. Revenues.

Which financial statement shows that a company's resources equal claims to those resources? (LO1-3)

Balance sheet.

Based on the introductory section of this chapter, which course is most like financial accounting? (LO1-1)

Foreign language

The body of rules and procedures that guide the measurement and communication of financial accounting information is known as: (LO1-5)

Generally Accepted Accounting Principles (GAAP).

What is a benefit to a career in accounting? (LO1-6)

High salaries. Wide range of job opportunities. High demand for accounting graduates.

Which financial statement conveys a company's ability to generate profits in the current period? (LO1-3)

Income statement.

Why does financial accounting have a positive impact on our society? (LO1-4)

It allows investors and creditors to redirect their resources to successful companies and away from unsuccessful companies.

Financial accounting serves which primary function(s)? (LO1-2)

Measures business activities. Communicates business activities to interested parties.

What are the two fundamental qualitative characteristics identified by the Financial Accounting Standards Board's (FASB) conceptual framework? (LO1-7)

Relevance and faithful representation.