ch 1
Which of the following appear on the statement of stockholders' equity?
1. beginning balance of retained earnings 2. net income 3. dividends
The two sources of stockholders' equity are amounts ______.
1. earned by the corporation 2. paid in from shareholders
Which of the following are attributes of FASB?
1. full-time board members 2. private sector organization 3. independence
The four primary financial statements published to provide information to external users include which of the following?
1. income statement 2. statement of stockholders' equity 3. balance sheet 4. statement of cash flows
The private sector organization that is currently responsible for setting accounting standards in the United States is the
Financial Accounting Standards Board (FASB)
The system that maintains records of a company's operations and then communicates that information to decision makers is referred to as ______________.
accounting
Accounting professionals:
are in high demand
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
A net loss ______ retained earnings.
decreases
Stockholders' equity arises primarily from amounts invested by shareholders and amounts ______.
earned by the corporation
A code or moral system that provides criteria for evaluating right and wrong is referred to as-
ethics
___________ is a term that refers to a code or moral system that provides criteria for evaluating right or wrong
ethics
True or false: Technical accounting skills represent the only skills required of accounting professionals.
false; other skills like interpersonal and leadership are important
___________ Statements represent a company's primary means of communicating information to external users.
financial
Information that best explains companies' stock price performance is reported in the _________ _________
income statement
The financial statement that is most useful in explaining a company's stock price performance is the-
income statement
The financial statement that summarizes revenues and expenses for a period of time is the ____________ ______________.
income statement
Which financial statement reports revenues and expenses?
income statement
When a company earns net income, its retained earnings:
increase
Careers for accounting professionals typically include a choice between public and ________ accounting.
private
Profits earned by a company that have not been paid to stockholders are called _______________ earnings.
retained
Undistributed profits that have accumulated in the company over time are called ______________ earnings.
retained
Which of the following represents the net income earned by a corporation and not yet paid to shareholders?
retained earnings
True or false: Accounting professionals enjoy a wide variety of career opportunities.
true
An income statement reports:
1. revenues 2. expenses 3. net income
Which of the following are financial statements?
1. statement of stockholders' equity 2. income statement 3. balance sheet 4.statement of cash flows
Which of the following knowledge and skills should an accounting professional possess?
1. technical accounting knowledge 2. leadership skills 3. ability to work in teams 4. presentation skills
The two main functions of ______________ are to (1) measure business activities and (2) to communicate those measurements to investors and creditors
accounting
True or false: The fundamental activities of a business are selling activities and marketing activities.
false; the fundamental activities are financing, investing, and operating activities
Companies communicate information about their business activities primarily through-
financial statements
The two main career paths in accounting are referred to as:
private and public
In our society, the two main functions of accounting are to
1. measure business activities 2. communicate information to investors and creditors
Information that best explains companies' stock price performance is reported in the __________ ___________.
income statement