Ch.1 ACC 211

True or false: Financial statements must have a year end of December 31.

False

The underlying rules of accounting in the US are called __________ _________ _________ principles.

generally accepted accounting

The unit-of-measure assumption states that ______.

results of business activities should be reported in an appropriate monetary unit

Prepare a single-step income statement in its proper order starting from the top to the bottom.

1. Sale Revenue of $9,000 2. Salaries and Wages Expense of $5,000 3. Utilities Expense of $1,400 4. Advertising Expense of $100 5. Net Income of $2,500

Companies typically prepare Blank______ financial statements each accounting period.

4

When a company is owed for sales made to customers on credit, the asset called:

Accounts Receivable will be reported on the balance sheet.

Which financial statement reports the financial performance of the business during the current accounting period?

Income Statement

Which of the following are the correct terms for the 3 activities found on the statement of cash flows? (Select all that apply.)

Investing Operating Financing

Which of the following statements are true about the balance sheet. (Select all that apply.)

It reports the economic resources and claims on those resources It is sometimes called the statement of financial position It reports the assets, liabilities, and stockholders' equity at a point in time.

True or false: A fiscal year can end on a date other than December 31. A calendar year ends on December 31.

True

Financial statements can be prepared ______. (Check all that apply.)

on a quarterly basis on a monthly basis on a fiscal year basis

The main reason companies exist is to maximize their ______. (Check all that apply.)

profits owners' wealth