Financial Management FIN 3400 Chapter 1

In what order are the four primary financial statements prepared?

Income statement > Balance sheet > Statement of stockholders' equity > Statement of cash flows

* 1. ________ are items owed to a creditor. ________ are items owned by a company. ________ represents owners' claims to company resources.

Liabilities; Assets; Stockholders' equity

The ________ retains the power and authority to set accounting standards. Currently, this responsibility has been delegated to the________.

Securities and Exchange Commission; Financial Accounting Standards Board

Under ________ accounting, revenues are recorded when earned and expenses are recorded with related revenues. Under ________ accounting, revenues are recorded when cash is received and expenses are recorded when cash is paid out. Financial statements are prepared using ________ accounting.

accrual-basis; cash-basis; accrual-basis

The difference between net income and dividends paid is known as what

addition to retained earnings