Learnsmart 1

Revenues are________

Earned by selling goods or services to customers

Which of the following are part of stockholders' equity?

Retained Earnings Common Stock

Companies typically prepare _____ financial statements each accounting period.

4

Over Armour, inc., solf 5 shirts to its customer for a price of $10 per shirt that cost $6 per shirt. Total Revenues equals $_____ and the expense equals $_______-

$50 $30

Revenues

Amounts earned by selling goods and services

Expenses

Amounts used to generate profits

An owner gives 5,000 cash to his company in exchange for stock. This will increase the company's _____

Cash Common stock Total Stockholders' equity

Place these items in the order in which they appear on the statement of cash flow

Cash Flow by Operating Activities Cash Flows by Investing Activities Cash Flow by Financing Activities

Which of these would be reported as Cash Flows from (used in) Investing Activities

Cash paid to buy equipment Cash paid to build a new HQ

Which of the following would be included in the operating activity section of the statement of cash flows

Cash received from customers paid to suppliers paid to employees

Liabilities

Creditors' claims to economic resources

Profits earned by company that are paid to stockholders are called

Dividends

Assets

Economic resources that will provide future benefit

The order in which assets are reported on the balance sheet is based on when the asset is

Expected to be used or turned into cash

The management of Acme, Inc. prepared a statement for Acme's external users that listed the company's assets, liabilities, and stockholders' equity as of the last day of the year. This statement must be a(n)

Financial statement

borrowing from a bank is

Financing activity

________ are measurable amounts that the company owes to creditors

Liabilities

Which financial statement reports revenues and expenses?

Income statement

Select all of the true statements about net income and net loss

Net income equals revenues minus expenses Net income increases retained earning Net losses decrease retained earnings When revenues are less than expenses, a net loss exists

________To the financial statements help users understand how financial statements amounts were derived and includes other information that may affect the users' decision

Notes

Three types of activities reported on the statement of cash flows are the

Operating Investing Financing.... activities

Stockholders' equity

Owners' claims to economic resources

Which of the following statements are true regarding the income statement? income statements ______.

Report revenues minus expenses are sometimes called the statement of operations.

Statement of retained earnings

Reports the accumulation of profits kept by the business during the current accounting period with that of prior periods

Income statement

Reports the financial performance of the business during the current accounting period

Balance sheet

Reports the financial position of the business at a point in time

Statement of cash flows

Reports the operating, investing and financing activities effect on cash.

Profits earned by a company that have not been paid to stock holders at the end of an accounting period are called ______ earnings

Retained

Profits that have accumulated in the company over time are ______ earnings

Retained

Prepare a statement of retained earnings for the month of September from top to bottom

Retained Earnings, September 1 net income dividends Retained earnings, september 30th

Which of these appears on both the statement of retained earnings and the balance sheet

Retained earnings

Place the single-step income statement items in the proper order from top to bottom

Revenues Expenses Net income

Businesses earn profits by

Selling goods or services at more than they cost Having revenues greater than expenses

A financial statement heading states that it was prepared: "For the Year Ended December 31, 2017." what types of financial statements could this be?

Statement of cash flows Statement of retained earnings Income Statement

The heading of a balance sheet might include which of the following

The name of the business The title "Balance sheet" At Decemeber 31, 2018

Which of the following are reported on a balance sheet?

assets cash retained earnings stockholders' equity liabilities

A(n)________ is a cost of doing business that is necessary to earn_______

expense; revenue

The heading of an income statement should include

name of the business the title "income statement" the accounting period covered by the statement

An income statement includes which of the following items

net income expenses revenues

The _______ activities section on the statement of cash flows reports the activities directly related to running the business to earn profit.

operating

The main reason companies exist is to maximize their

owners' wealth profits

Accounts ________________ is an asset on the balance sheet that reports the amounts owed by customers for sales or services provided on credit.

receivable

The unit-of-measure assumption states that ______.

results of business activities should be reported in an appropriate monetary unit

Accounts are

used to accumulate and report the effects of each different business activity