ACG Chapter 1

A balance sheet lists the assets, ________, and stockholders' equity as of a specific date.

Liabilities

Information that best explains companies' stock price performance is reported on the

Income statement

When a company earns net income, its retained earnings

Increase

What is found on a balance sheet?

Stockholders equity, assists, liabilities

Management discussion and analysis and note disclosures to the financial statements are included in the

Annual report OR 10K

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

Balance sheet

common abbreviation for the Board that currently establishes financial accounting and reporting standards in the U.S. (Enter the acronym.)

FASB

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

Financial Accounting Standards Board.

Three classifications on the statement of cash flow

Investing, operating, and financial activities

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

Leadership skills Technical accounting knowledge Presentation skills Ability to work in teams

The accounting equation is: Assets = ______ + Stockholders' Equity.

Liabilites

What has to be included in annual reports?

Management discussion and analysis; Notes disclosures

The two main functions of accounting

Measure business activities and communicate info to investors and creditors

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

Retained

The accumulated net income earned since the inception of the corporation and not yet paid to shareholders is referred to as

Retained earnings

The financial statement that provides information about cash receipts and cash disbursements for the period is the

Statement of cash flows

Which of the following appear(s) on the balance sheet?

Utilities payable, Common stock, Accounts receivable

The purpose of a statement of cash flows is to provide information about the

cash receipts and cash disbursements during a period

The purpose of a statement of cash flows is to provide information about the

cash receipts and cash disbursements during a period.

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

earned by the corporation

The three classifications on the statement of cash flows are cash flows from

operating activities, investing activities, financing activities

The statement of cash flows classifies items as

operating, investing, and financing