Accounting Ch.1 NotesT
The four financial statements published to provide information to external users include which of the following
1) Balance sheet 2) Statement of Stockholders' Equity 3) Statement of Cash Flows
In addition to the financial statements, which of the following must be included in the annual reports?
1) Management discussion and analysis 2) notes disclosures
According to the conceptual framework, for accounting information to be relevant, what two qualities must it possess?
1) Predictive value 2) Confirmatory value
Which of the following are attributes of FASB (Financial Accounting Standards Board)?
1) Private sector organization 2) independence 3) Full-time board members
The heading of an income statement should include which of the following?
1) The accounting period covered by the statement 2) The name of the business 3) The title of the financial statement
The three classifications on the statement of cash flows are cash flows from:
1) operating activities 2) financing activities 3) investing activities
The two sources of a stockholders' equity are amounts:
1) paid in from shareholders 2) earned by the corporation
Balance Sheets contain what type of information
Assets, liabilities, and stockholders' equity
_____________ is the common abbreviation for the Board that currently establishes financial accounting and reporting standards in the U.S.
FASB
Which financial statement reports revenues and expenses?
Income statement
Statement of Cash Flows
Operating, Investing, and financing activities
Predictive value and confirmatory value are components of which fundamental qualitative characteristic?
Relevance
Which of the following represents the net income earned by a corporation and not yet paid to shareholders?
Retained earnings
Income Statements contain what type of information
Revenues and expenses
The system that maintains records of a company's operations and then communicates that information to decision makers is referred to as _________.
accounting
Management discussion and analysis and note disclosures to the financial statements are included in the _____________ __________.
balance sheet
The purpose of a statement of cash flow is to provide information about the:
cash receipts and cash disbursements during a period
Predictive Value
consistently increasing income helps forecast the company's ability to generate future cash
_______________ is a term that refers to a code or moral system that provides criteria for evaluating right or wrong.
ethics
Information that best explains company's stock price performance is reported on 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 is the most useful in explaining a company's stock price performance is the
income statement
The purpose of an ___________ ____________ is to report the profit-generating activities of the firm during a period of time.
income statement
The purpose of an ______________ ______________ is to report profit-generating activities of the firm during a period of time.
income statement
When revenues are greater than expenses, a company has net _________, whereas when revenues are less than expenses, a company has a net _________.
income/profit/earnings/gain/gains , loss/losses
When a company earns net income, its retained earnings (increase or decrease)
increase
Salaries already paid to employees for the month is a ___________ account that appears on the ___________.
liability, balance sheet
Confirmatory value
positive income is consistent with effectiveness of management
The accumulated net income earned since the inception of the corporation and not yet paid to shareholders is referred to as __________ __________
retained earnings
The purpose of an income statement is to:
summarize the profit-generating activities that occurred during a particular reporting period
