Pre-assignment for chapter 1

The statement of cash flows classifies items as

operating, investing, and financing

Which financial statements shows a firm's financial position on a particular date?

Income statement

The financial statement that displays a firm's financial position on a particular date is the

balance sheet

The purpose of a statement of cash flows is to provide information about the

cash receipts and cash disbursements during a period.

The characteristic that a new accounting standard should not favor one group of companies over others or achieve a particular social outcome is an example of

neutrality

The financial statement that provides information about cash receipts and cash disbursements for the period is the

statement of cash flows

Which aspects relate to the information provided in an income statement?

Ability to earn a profit from its operation during the current period.

Faithful representation requires information to have which of the following three characteristics?

Completeness, Neutrality, Free from material error

The private sector organization that is currently responsible for setting accounting standards in the United States is the

Financial Accounting Standards Board.

Which appears on the balance sheet?

Utilities payable, common stock, and accounts receivable (stockholders' equity, assets, liabilities)

A net loss ___ retained earnings.

decreases

Information that best explains companies' stock price performance is reported in the

income statement

The purpose of a(n) _______ is to report the profit-generating activities of the firm during a period of time.

income statement

Ethics

is a term that refers to a code or moral system that provides criteria for evaluating right or wrong.

In addition to the financial statements, which of the following must be included in the annual reports?

management discussion and analysis. notes disclosures.

The accumulated net income earned since the inception of the corporation and not yet paid to shareholders is referred to as

retained earnings

Retained earnings represent

the total cash the company has accumulated over its life.