accounting 101 chapter 1
Which of the following appear on the statement of stockholders' equity?
Beginning balance of retained earnings Net income Dividends
Phrase meaning to present the accounting records in an altered format
Cooking the books
Which of these would be found on a company's balance sheet?
Equipment Notes payable Accounts receivable Utilities payable Common stock
The private sector organization that is currently responsible for setting accounting standards in the United States is the
Financial Accounting Standards Board.
Which of the following items are found on a balance sheet?
Liabilities Stockholders' equity Assets
Responsible for applying generally accepted accounting principles (GAAP)
Management
Separation of management from those who own the business or finance operations
Need for auditing
View expressed by an auditor as to the accuracy of a company's financial statements
Opinion
Regulatory body that requieres audits of all publicly traded companies
Securities and exchange commission
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
The purpose of a statement of cash flows is to provide information about the
cash receipts and cash disbursements during a period.
To be useful for decision making, information should possess the fundamental qualities of relevance and ___representaton
faithful
is the common abbreviation for the Board that currently establishes financial accounting and reporting standards in the U.S
fasb
Statements represent a company's primary means of communicating information to external users.
financial
Which financial statement reports revenues and expenses?
income statement
The accounting equation is: Assets = ______ + Stockholders' Equity.
liabilities
An income statement reports
net income or loss revenues expenses
The two sources of stockholders' equity are amounts
paid in from shareholders earned by the corporation
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
Which of the following are attributes of FASB?
Full-time board members Independence Private sector organization
Auditors are not employees of the company they audit they are
Independent
The primary functions of accounting are to:
communicate information to decision makers. measure a company's activities.
In our society, the two main functions of accounting are to
communicate information to investors and creditors. measure business activities.
Stockholders' equity arises primarily from amounts invested by shareholders and amounts
earned by the corporation
The form of business organization where an entity is legally separate from its owners and issues shares of stock is a
corporation
net loss _____ retained earnings
decreases
Retained earnings represents
the total net income earned over the life of the company that has not been distributed as dividends.
Which of the following are financial statements?
Statement of stockholders' equity Income statement Balance sheet statement of cash flow
Information that best explains companies' stock price performance is reported on the .
income statement
Party that reports on wether a company's financial statements are in accordance with GAAP
Auditor
Which of the following knowledge and skills should an accounting professional possess?
Presentation skills Ability to work in teams Technical accounting knowledge Leadership skills
Companies communicate information about their business activities primarily through
financial statements