Chapter 1 Homework Answers – Flashcards

Which of the following items would not appear in an income statement?

Which financial statement is typically prepared first?

The body of rules and procedures that guide the measurement and communication of financial accounting information is known as:

In what order are the following financial statements prepared: (A) balance sheet, (B) income statement, and (C) statement of stockholders' equity?

Which financial statement reports a company's retained earnings?

Which of the following accounts appears in the statement of stockholders' equity?

Which of the following statements regarding financial reports is not correct? A) A balance sheet contains assets, liabilities, and stockholders' equity information. B) An income statement shows revenues and expenses. C) A statement of stockholders' equity reports revenues, net income, and dividends information. D) A statement of cash flows shows cash inflows and outflows from operating, investing, and financing activities.

The primary purpose(s) of financial accounting is (are) to: A) Measure and record business transactions. B) Prepare federal and state tax returns. C) Communicate financial results to investors and creditors. D) a and c

T/F- Accounting can be defined as: 1.The language of business. 2. A measurement/communication process. 3. A mathematics course.

Select the business organization that matches with the description. A) Business owned by two or more persons. B) Entity legally separate from its owners. C) Business owned by a single person

Resources owned

Amounts owed

Owners claims

Sales of products and services

Distributions to owners

Costs of selling products or services

Change in owners' claims to resources

Profitability of the company.

Change in cash as a result of operating, investing, and financing activities.

Resources equal creditors' and owners' claims to those resources.