Ch1 Pre Lecture Mod

Which of the following are internal reports that accounting provides to internal users?

Both forecasts of cash needs and financial comparisons

Which of the following is not a principal type of business activity?

Delivering

(T/F) A business organized as a separate legal entity owned by stockholders is a partnership.

False

(T/F)External users of accounting information are managers who plan, organize, and run a business.

False

Which of the following is not one of the three forms of business organization?

Investors

Net income results when

Revenues > Expenses.

Which is not a required part of an annual report of a publicly traded company?

Statement of cash flows. Notes to the financial statements. Management discussion and analysis. The Answer is : All of these are required.

Which of the following financial statements is divided into major categories of operating, investing, and financing activities?

The statement of cash flows.

(T/F)The accounting information needs and questions of external users vary considerably.

True

(T/F)The liability of corporate stockholders is limited to the amount of their investment.

True

The liability created by a business when it purchases coffee beans and coffee cups on credit from suppliers is termed a(n)

account payable.

A balance sheet shows

assets, liabilities, and stockholders' equity.

Resources owned by a business are referred to as

assets.

A business organized as a separate legal entity is a

corporation.

Borrowing money is an example of a(n)

financing activity.

Issuing shares of stock in exchange for cash is an example of a(n)

financing activity.

The common characteristic possessed by all assets is

future economic benefit.

The statement of cash flows would disclose the payment of a dividend

in the financing activities section.

Buying assets needed to operate a business is an example of a(n)

investing activity.

The partnership form of business organization

is a common form of organization for service-type businesses.

A business organized as a corporation

is owned by its stockholders.

Debts and obligations of a business are referred to as

liabilities.

Buying and selling products are examples of

operating activities.

Most business enterprises in the United States are

proprietorships and partnerships.

The retained earnings statement shows all of the following except

the time period following the one shown for the income statement