Ch. 1 Questions
The accounting equation is:
Assets = Liabilities + Owner's Equity
A net loss Blank______ retained earnings
decreases
Which of the following items are found on a balance sheet?
Assets Liabilities Stockholders' equity
Which of the following appear(s) on the balance sheet
Common stock Accounts receivable Utilities payable
The system that maintains records of a company's operations and then communicates that information to decision makers is referred to as
accounting
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
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 corporation
Which of these would be found on a company's balance sheet?
equipment notes payable accounts receivable
Which financial statement reports revenues and expenses?
income statement
When a company earns net income, its retained earnings
increase
The accounting equation is: Assets = _______ + Stockholders' Equity.
liabilities
The three classifications on the statement of cash flows are cash flows from
operating, investing, or financing activities
Undistributed profits that have accumulated in the company over time are called____
retained
The financial statement that provides information about cash receipts and cash disbursements for the period is the
statement of cash flows