ACC 202 chapter 1

decrease

A net loss ______ retained earnings.

financial statements.

Companies communicate information about their business activities primarily through

Making good business decisions

Financial accounting information is essential to:

the total net income earned over the life of the company that has not been distributed as dividends.

Retained earnings represents

Stockholders' Equity

The accounting equation is: Assets = Liabilities +

liabilites

The accounting equation is: Assets = ______ + Stockholders' Equity.

Accounting

The system that maintains records of a company's operations and then communicates that information to decision makers is referred to as

Generally Accepted Accounting Principles (GAAP)

The term GAAP stands for:

Accounting

The two main functions of_________are to (1) measure business activities and (2) to communicate those measurements to investors and creditors

paid in from shareholders Earned by the corporation

The two sources of stockholders' equity are amounts ______.

financial accounting

represent a company's primary means of communicating information to external users.

Retained Earnings

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

the amount of income earned over the company's life minus the dividends paid to shareholders over the company's life

The balance in retained earnings represents:

Generally Accepted Accounting Principles (GAAP)

The body of rules and procedures that guide the measurement and communication of financial accounting information is known as

Balance Sheet

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

income statement

The financial statement that is most useful in explaining a company's stock price performance is the

Income Statement

The financial statement that summarizes revenues and expenses for a period of time is the

Relevance and faithful representation

What are the two fundamental qualitative characteristics identified by the Financial Accounting Standards Board's (FASB) conceptual framework?

All of these answer choices are correct

What is a benefit to a career in accounting? High salaries. Wide range of job opportunities. High demand for accounting graduates. All of these answer choices are correct.

Financial Accounting Standards Board (FASB)

Which body has the primary responsibility for the establishment of Generally Accepted Accounting Principles?

Income Statement

Which financial statement reports revenues and expenses?

provides limited liability to stockholders

An advantage of the corporate form of organization is that a corporation

Retained earnings

Profits earned by a company that have not been paid to stockholders are called

Balance Sheet Statement of Stockholders' Equity Income Statement Statement of Cash Flows

The four financial statements published to provide information to external users include which of the following?

Dividends Net Income Beginning balance of retained earnings

Which of the following appear on the statement of stockholders' equity? (Select all that apply.)

Balance sheet Income statement Statement of stockholders' equity

Which of the following are financial statements? (Select all that apply.)

Expense

Which of the following describes the cost of selling to customers?

assets liabilities stockholders' equity

Which of the following items are found on a balance sheet? (Select all that apply.)

Equipment Notes payable Accounts Receivable

Which of these would be found on a company's balance sheet? (Select all that apply.)