accounting chapter 1

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

Ability to earn a profit from its operations during the current period

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

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

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

annual report

Companies communicate information about their business activities primarily through

financial statement

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

financial statement

The purpose of a(n) _____ _______ is to report the profit-generating activities of the firm during a period of time. (Enter one word per blank)

income statement

Which financial statement reports revenues and expenses?

income statement

The primary functions of accounting are to:

measure a company's activities. communicate information to decision makers.

Pizza Aroma generated $11,000 in revenues and had expenses of $6,000. Pizza Aroma's net income or loss is:

net income 5,000

The heading of an income statement should include which of the following?

The name of the business The accounting period covered by the statement title of the financial statement

An income statement reports

expenses revenues net income or loss

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

income statement

The three most common forms of business organization

sole proprietorship, partnership, corporation

Which of the following are financial statements?

Balance sheet Income statement Statement of stockholders' equity