Pre-assignment for chapter 1
The statement of cash flows classifies items as
operating, investing, and financing
Which financial statements shows a firm's financial position on a particular date?
Income statement
The financial statement that displays a firm's financial position on a particular date is the
balance sheet
The purpose of a statement of cash flows is to provide information about the
cash receipts and cash disbursements during a period.
The characteristic that a new accounting standard should not favor one group of companies over others or achieve a particular social outcome is an example of
neutrality
The financial statement that provides information about cash receipts and cash disbursements for the period is the
statement of cash flows
Which aspects relate to the information provided in an income statement?
Ability to earn a profit from its operation during the current period.
Faithful representation requires information to have which of the following three characteristics?
Completeness, Neutrality, Free from material error
The private sector organization that is currently responsible for setting accounting standards in the United States is the
Financial Accounting Standards Board.
Which appears on the balance sheet?
Utilities payable, common stock, and accounts receivable (stockholders' equity, assets, liabilities)
A net loss ___ retained earnings.
decreases
Information that best explains companies' stock price performance is reported in the
income statement
The purpose of a(n) _______ is to report the profit-generating activities of the firm during a period of time.
income statement
Ethics
is a term that refers to a code or moral system that provides criteria for evaluating right or wrong.
In addition to the financial statements, which of the following must be included in the annual reports?
management discussion and analysis. notes disclosures.
The accumulated net income earned since the inception of the corporation and not yet paid to shareholders is referred to as
retained earnings
Retained earnings represent
the total cash the company has accumulated over its life.