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