Acc
True or false: An external transaction is a transaction the firm conducts with a separate economic entity.
True
The accounting equation is: Multiple choice question. Assets - Liabilities = Stockholders' Equity - Liabilities Assets = Liabilities - Stockholders' Equity Assets + Liabilities = Stockholders' Equity Assets = Liabilities + Stockholders' Equity
Assets = Liabilities + Stockholders' Equity
Which of the following are stockholder equity accounts? Multiple select question. Accounts receivable Notes payable Common stock Retained earnings Inventory
Common stock Retained earnings
What is the effect of dividends on retained earnings? Multiple choice question. Decrease Increase No effect
Decrease
A(n) _________. transaction involves an exchange between the company and a separate economic entity.
External
True or false: The two functions of financial accounting are to measure business activities and prepare tax returns
False Reason: The two functions of financial accounting are to measure business activities and communicate those measurements to external parties for decision-making purposes.
True or false: The two functions of financial accounting are to measure business activities and prepare tax returns.
False Reason: The two functions of financial accounting are to measure business activities and communicate those measurements to external parties for decision-making purposes.
Revenues cause retained earnings to Multiple choice question. decrease. Revenues do not change retained earnings. increase.
Increase
What effect does revenue have on retained earnings? Multiple choice question. No effect Decreases Increases
Increase
Net income ______ retained earnings. Multiple choice question. has no effect on decreases increases
Increases
Which of the following are stockholder equity accounts? Multiple select question. Retained earnings Common stock Accounts receivable Notes payable Inventory
Retained earnings and Accounts receivable
The two basic components for calculating net income are ________ and _________ . (Enter one word per blank.)
Revenue and expenses
Identify the three components of retained earnings. Multiple select question. Revenues Assets Expenses Dividends
Revenues, assets, expenses, and dividends
What are the three components of retained earnings? Multiple choice question. Common stock, net income, and notes payable Assets, liabilities, and stockholders' equity Revenues, expenses, and dividends Assets, liabilities, and income
Revenues, expenses, and dividends
The accounting equation is: Assets = Liabilities + Multiple choice question. Creditors' Interest Revenues Stockholders' Equity Net Income Retained Earnings
Stockholders' Equity
The two components of stockholders' equity are Multiple choice question. common stock and retained earnings. revenues and dividends. retained earnings and notes payable. assets and liabilities.
common stock and retained earnings.
The two roles of financial accounting are to: Multiple select question. report cost accounting information for internal decisions. communicate information to external parties for decision making purposes. measure business activities of the company. measure and report results to taxing authorities.
communicate information to external parties for decision making purposes and measure business activities of the company.
Ursula Company's bookkeeper records revenue relating to a customer transaction. This indicates that the company Multiple choice question. provided goods or services to a customer. signed a contract with a customer. received a cash payment from a customer.
provided goods or services to a customer.