ch 1

Which of the following appear on the statement of stockholders' equity?

1. beginning balance of retained earnings 2. net income 3. dividends

The two sources of stockholders' equity are amounts ______.

1. earned by the corporation 2. paid in from shareholders

Which of the following are attributes of FASB?

1. full-time board members 2. private sector organization 3. independence

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

1. income statement 2. statement of stockholders' equity 3. balance sheet 4. statement of cash flows

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

Financial Accounting Standards Board (FASB)

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

accounting

Accounting professionals:

are in high demand

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

balance sheet

Which of the following financial statements shows a company's financial position on a particular date?

balance sheet

A net loss ______ retained earnings.

decreases

Stockholders' equity arises primarily from amounts invested by shareholders and amounts ______.

earned by the corporation

A code or moral system that provides criteria for evaluating right and wrong is referred to as-

ethics

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

ethics

True or false: Technical accounting skills represent the only skills required of accounting professionals.

false; other skills like interpersonal and leadership are important

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

financial

Information that best explains companies' stock price performance is reported in 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 ____________ ______________.

income statement

Which financial statement reports revenues and expenses?

income statement

When a company earns net income, its retained earnings:

increase

Careers for accounting professionals typically include a choice between public and ________ accounting.

private

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

retained

Undistributed profits that have accumulated in the company over time are called ______________ earnings.

retained

Which of the following represents the net income earned by a corporation and not yet paid to shareholders?

retained earnings

True or false: Accounting professionals enjoy a wide variety of career opportunities.

true

An income statement reports:

1. revenues 2. expenses 3. net income

Which of the following are financial statements?

1. statement of stockholders' equity 2. income statement 3. balance sheet 4.statement of cash flows

Which of the following knowledge and skills should an accounting professional possess?

1. technical accounting knowledge 2. leadership skills 3. ability to work in teams 4. presentation skills

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

accounting

True or false: The fundamental activities of a business are selling activities and marketing activities.

false; the fundamental activities are financing, investing, and operating activities

Companies communicate information about their business activities primarily through-

financial statements

The two main career paths in accounting are referred to as:

private and public

In our society, the two main functions of accounting are to

1. measure business activities 2. communicate information to investors and creditors

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

income statement