Term
| The amount of net income shown on the income statement also appears on the: |
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Definition
| statement of retained earnings |
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Term
| The decision framework for making ethical judgments considers the following questions: |
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Definition
| Who are the stakeholders? what is the issue? what are the alternatives? NOT what alternative maximizes profit |
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Term
| Which of the following must be added to beginning Retained Earnings to compute ending Retained Earnings: |
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Definition
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Term
True or false:
In an LLP, each partner is liable for partnership debts only to the extent of their investment in the partnership plus their share of the liabilities. |
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Definition
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Term
| What is the proper order for the categories of the statement of cash flows? |
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Definition
| Operating activities, investing activities, and financing activities. |
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Term
| At the end of the current accounting period, account balances were as follows: cash: $180,000; Accounts Receivable: $75,000; common stock: $20,000; Retained Earnings: $65,000. Liabilities for the period were: |
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Definition
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Term
| Which financial statement must be prepared before the others? |
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Definition
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Term
| the sum of "outsider claims" plus "insider claims" equals: |
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Definition
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Term
| The income statement is prepared to determine: |
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Definition
| the change in retained earnings due to the results of operations |
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Term
| During March, assets increased by $19,000 and liabilities increased by $5,000. Stockholders' equity must have: |
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Definition
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Term
| Current assets are assets expected to be converted to cash, sold, or consumed within the next: |
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Definition
| 12 months or within the business' normal operating cycle if longer than a year |
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Term
| A company's gross profit for the period is reported on the: |
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Definition
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Term
| The two main components of stockholders' equity are: |
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Definition
| retained earnings and paid-in capital |
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Term
| Equipment would appear on the: |
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Definition
| Balance sheet with the long-term assets |
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Term
| Cash paid to purchase a building appears on the statement of cash flows among the: |
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Definition
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Term
| The accounting equation can be expressed as: |
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Definition
| assets-liabilities=owners' equity |
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Term
| which of the following is a true statement about International Financial Reporting Standards? |
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Definition
| They are converging gradually with the US standards |
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Term
| Quality instruments had retained earnings of $180,000 at December 31, 2009. Net income for 2010 totaled $120,000, and dividends fore 2010 were $30,000. How much retained earnings should Quality report at Dec. 31 2010? |
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Definition
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Term
| An investor wishing to assess a company's overall financial position at the end of the period would probably examine the: |
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Definition
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Term
| True or false: the amount of cash received on the sale of the company's stock in excess of par value is called retained earnings |
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Definition
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Term
| Accumulated depreciation is normally associated with which asset on the balance sheet? |
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Definition
| property, plant, and equipment |
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Term
| The portion of net income that the company has kept over a period of years is called: |
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Definition
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Term
| An Oklahoma City business paid $15,000 cash for equipment used in the business. At the time of purchase, the equipment had a list price of $20,000. When the balance sheet was prepared, the value of the equipment was $22,000. What is the relevant measure of the value of the equipment? |
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Definition
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Term
| Retained earnings appears on which of the following financial statements? |
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Definition
| Statement of Retained Earnings and balance sheet, but not the income statement of statement of cash flows |
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Term
| Stockholders' equity for commerce corporation on January 1, 2010 and December 31, 2010 were $60,000 and $75,000 respectively. Assets on January 1, 2010 and December 31, 2010 were $115,000 and $105,000 respectively. Liabilities on January 1, 2010 were $55,000. What is the amount of liabilities on Dec 31, 2010? |
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Definition
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Term
| True or false:Financial accounting provides budgeting information to a company's managers |
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Definition
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Term
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Definition
| covers a defined period of time. |
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Term
| The statement that reports revenues and expenses for the period is the: |
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Definition
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Term
| True or false: net income and net profit mean the same thing to accountants |
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Definition
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Term
| Liabilities are divided into two categories: |
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Definition
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Term
| Where would cash received from the sale of stock appear on the statement of cash flows? |
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Definition
| in the financing activity section |
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Term
| The heading John Smith, Capital, indicates the owners' equity of a: |
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Definition
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Term
| During the year, Amos Company's stockholders' equity increased from $28,000 to $38,000. Amos earned net income of $13,000. How much in dividends did Amos declare during the year? |
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Definition
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Term
| When information is important enough to the informed user, so that, if it was omitted or erroneous, it would make a difference in the user's decision, it is: |
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Definition
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Term
| The stable-monetary-unit assumption of accounting: |
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Definition
| enables accountants to ignore the effect of inflation in the accounting records. |
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Term
| The income statement presents a summary of the: |
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Definition
| revenues and expenses of an entity for a specific time period. |
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Term
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Definition
| processes data into reports and communicates the data to decision makers, measures business activities, and is often called the language of business |
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Term
| The valuation of assets on the balance sheet is generally based on: |
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Definition
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Term
| Receivables are classified as: |
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Definition
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Term
| The amount that stockholders have invested in a corporation is called: |
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Definition
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Term
| Which type of business organization provides the least amount of protection for bankers and other creditors of the company? |
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Definition
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Term
| Characteristics of a sole proprietor include: |
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Definition
| a distinct entity, separate from its owner for accounting purposes |
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Term
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Definition
| decrease retained earnings on the statement of retained earnings |
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Term
| The relevant measure of the value of the assets of a company that is going out of business is the: |
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Definition
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Term
| Accountants follow guidelines for professional measurement and disclosure of financial information called: |
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Definition
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Term
| For accounting purposes, the business entity should be considered separate from its owners if the business is organized as a: |
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Definition
| proprietorship, corporation, and partnership |
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Term
| All of the following are forms of business organizations: |
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Definition
limited liability partnership, proprietorship, limited liability company
**NOT limited partnership** |
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Term
| International financial reporting standards are set by the: |
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Definition
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