Acc

True or false: An external transaction is a transaction the firm conducts with a separate economic entity.

True

The accounting equation is: Multiple choice question. Assets - Liabilities = Stockholders' Equity - Liabilities Assets = Liabilities - Stockholders' Equity Assets + Liabilities = Stockholders' Equity Assets = Liabilities + Stockholders' Equity

Assets = Liabilities + Stockholders' Equity

Which of the following are stockholder equity accounts? Multiple select question. Accounts receivable Notes payable Common stock Retained earnings Inventory

Common stock Retained earnings

What is the effect of dividends on retained earnings? Multiple choice question. Decrease Increase No effect

Decrease

A(n) _________. transaction involves an exchange between the company and a separate economic entity.

External

True or false: The two functions of financial accounting are to measure business activities and prepare tax returns

False Reason: The two functions of financial accounting are to measure business activities and communicate those measurements to external parties for decision-making purposes.

True or false: The two functions of financial accounting are to measure business activities and prepare tax returns.

False Reason: The two functions of financial accounting are to measure business activities and communicate those measurements to external parties for decision-making purposes.

Revenues cause retained earnings to Multiple choice question. decrease. Revenues do not change retained earnings. increase.

Increase

What effect does revenue have on retained earnings? Multiple choice question. No effect Decreases Increases

Increase

Net income ______ retained earnings. Multiple choice question. has no effect on decreases increases

Increases

Which of the following are stockholder equity accounts? Multiple select question. Retained earnings Common stock Accounts receivable Notes payable Inventory

Retained earnings and Accounts receivable

The two basic components for calculating net income are ________ and _________ . (Enter one word per blank.)

Revenue and expenses

Identify the three components of retained earnings. Multiple select question. Revenues Assets Expenses Dividends

Revenues, assets, expenses, and dividends

What are the three components of retained earnings? Multiple choice question. Common stock, net income, and notes payable Assets, liabilities, and stockholders' equity Revenues, expenses, and dividends Assets, liabilities, and income

Revenues, expenses, and dividends

The accounting equation is: Assets = Liabilities + Multiple choice question. Creditors' Interest Revenues Stockholders' Equity Net Income Retained Earnings

Stockholders' Equity

The two components of stockholders' equity are Multiple choice question. common stock and retained earnings. revenues and dividends. retained earnings and notes payable. assets and liabilities.

common stock and retained earnings.

The two roles of financial accounting are to: Multiple select question. report cost accounting information for internal decisions. communicate information to external parties for decision making purposes. measure business activities of the company. measure and report results to taxing authorities.

communicate information to external parties for decision making purposes and measure business activities of the company.

Ursula Company's bookkeeper records revenue relating to a customer transaction. This indicates that the company Multiple choice question. provided goods or services to a customer. signed a contract with a customer. received a cash payment from a customer.

provided goods or services to a customer.