ACC 120 Chpt.1 – Flashcards
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Dividends:
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decrease stockholders' equity
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The initials GAAP stand for:
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Generally Accepted Accounting Principles
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The Financial Accounting Standards Board is primarily responsible for developing U.S. accounting principles
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true
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Which of the items below is a liability?
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accounts payable
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Revenues are reported under accrual accounting when:
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earned
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Which of the following is a revenue?
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amounts billed to customers when service is complete
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Which of the following is an asset?
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Land
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Which of the following is a liability?
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accounts payable
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The accounting equation may be expressed as:
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Assets - Liabilities = Owners Equity
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Accounts Receivable is an expense.
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false
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There are four things that effect Owner's Equity. Which of the following is not one of them?
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Liabilities are paid
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Sarbanes-Oxley (SOX) is a law passed by congress to
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help curb financial abuses at companies that issue stock to the public.
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Accounts Receivable is a(n):
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asset
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Which form of ownership provides all owners with the least amount of risk to their personal assets?
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Corporation
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How does the rendering of services on account affect the accounting equation?
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increase assets; increase owners' equity
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Which of the following will not appear on an income statement?
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accounts receivable
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The income statement reports all of the following except:
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Assets owned by a business.
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Which of the following will NOT appear on the balance sheet?
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rent revenue
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The financial statement that describes where a company's cash came from and where it went during the period is the:
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Statement of cash flows.
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Which of the following will NOT appear on a Statement of Retained Earnings?
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cash
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The date on the balance sheet could be
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May 31, 2012
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Accounts payable appear on which of the following statements?
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Balance sheet
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The statement of retained earnings:
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Reports how retained earnings changes over a period of time.
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A company will report a net loss if:
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Revenues are less than expenses
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The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called:
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An Income statement.
