Ch 1. Financial Accounting
Resources of a company are referred to as: (LO1-2)
. Assets.
Sales of products or services are referred to as: (LO1-2)
. Revenues.
Which financial statement shows that a company's resources equal claims to those resources? (LO1-3)
Balance sheet.
Based on the introductory section of this chapter, which course is most like financial accounting? (LO1-1)
Foreign language
The body of rules and procedures that guide the measurement and communication of financial accounting information is known as: (LO1-5)
Generally Accepted Accounting Principles (GAAP).
What is a benefit to a career in accounting? (LO1-6)
High salaries. Wide range of job opportunities. High demand for accounting graduates.
Which financial statement conveys a company's ability to generate profits in the current period? (LO1-3)
Income statement.
Why does financial accounting have a positive impact on our society? (LO1-4)
It allows investors and creditors to redirect their resources to successful companies and away from unsuccessful companies.
Financial accounting serves which primary function(s)? (LO1-2)
Measures business activities. Communicates business activities to interested parties.
What are the two fundamental qualitative characteristics identified by the Financial Accounting Standards Board's (FASB) conceptual framework? (LO1-7)
Relevance and faithful representation.