ACCT Test 1 Chapter one
Which of the following knowledge and skills should an accounting professional possess
Ability to work in teams Leadership skills Technical accounting knowledge Presentation skills
Balance Sheet
Assets, liabilities, and stockholders' equity
Which items are found on an income statement?
Expenses Revenues
The financial statement that is most useful in explaining a company's stock price performance is the
Income Statement
The financial statement that reports the company's revenues and expenses over an interval of time is the
Income Statement
The financial statement that summarizes revenues and expenses for a period of time is the
Income Statement
Who has the responsibility to apply accounting standards when communicating with investors and creditors?
Managment
Which of the following represents the net income earned by a corporation and not yet paid to shareholders?
Retained Earnings
Which of the following items are found on a balance sheet?
Stockholders' equity Liabilities Assets
The purpose of a statement of cash flows is to provide information about the
cash receipts and cash disbursements during a period.
The three classifications on the statement of cash flows are cash flows from
investing activities. financing activities. operating activities.
The primary functions of accounting are to:
measure a company's activities. communicate information to decision makers
The two main functions of Accounting are too
measure business activities and to communicate those measurements to investors and creditors. (Enter only one word.)
An income statement reports
net income or loss expenses revenues
In addition to the financial statements, which of the following must be included in the annual reports
notes disclosures. management discussion and analysis.
The statement of cash flows classifies items as
operating, investing, and financing.
Retained earnings represents
the total net income earned over the life of the company that has not been distributed as dividends.
Management discussion and analysis and note disclosures to the financial statements are included in the
Annual or 10k report
The financial statement that displays a firm's financial position on a particular date is the
Balance Sheet
Which of the following appear on the statement of stockholders' equity?
Beginning balance of retained earnings Net income Dividends
Stockholders' equity arises primarily from amounts invested by shareholders and amounts
Earned by the corporation
Which of these would be found on a company's balance sheet?
Notes payable Accounts receivable Equipment
Statement of Cash Flows
Operating, investing, and financing activities
The financial statement that provides information about cash receipts and cash disbursements for the period is the
Statement of Cashflows
The objective of financial accounting is to:
provide useful information for external decision makers
The four primary financial statements published to provide information to external users include which of the following?
Income Statement Statement of Stockholders' Equity Balance Sheet Statement of Cash Flows
Financial accounting is often referred to as a:
Language of business.
The system that maintains records of a company's operations and then communicates that information to decision makers is referred to as
Accounting
Income Statement
Revenues and expenses
Which of the following appear(s) on the balance sheet
Common stock Utilities payable Accounts receivable
Which of the following appear(s) on the balance sheet?
Common stock Utilities payable Accounts receivable
represent a company's primary means of communicating information to external users
Income Statements