Exam 1: Accounting and the Financial Statements

The four steps in preparing the Income Statement are: 1)Prepare heading, 2)List the revenues of the company, 3)List the expenses of the company, 4)List the dividends of the company.

As used in accounting, the "Notes to the Financial Statements" should be

"Economic resources" are known as

Which of the following best describes the term "current assets"?

The fundamental accounting equation is ____________________ = ____________________ + ____________________.

Net Income from the Income Statement increases ____________________.

Match each statement to the item listed below. a.Cash flows from financing activities b.Cash flows from investing activities c.Cash flows from operating activities -Cash flows related to the acquisition or sale of investment and long-term assets

An income statement provides information at one specific point in time, while the other basic financial statements provide information on activities that occur over a period of time.

Several items from the financial statements of Fireside Tires are listed. Use the following choices to identify the type of account for each item listed. (Choices may be used more than once.) a.Assets b.Liabilities c.Revenues d.Expenses e.Stockholders' Equity -Long-term notes payable

If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity?

Which one of the following is not one of the activities on the Statement of Cash Flows?

Which financial statement would you analyze to assess a firm's operating performance for the past year?

Assume that you have received copies of the financial statements for Best Buy for the years ending December 31, 2013 and 2012. Answer the following questions:

Another term for Short Term Investments is

Provided is a list of important users of accounting information. Also provided are descriptions of a major need for accounting information that may be experienced by the various users. Identify the one user group that is most likely to have the need described. (Choices may be used more than once.) a.Investors b.Management c.Supplier d.Banker e.Government f.Employees g.Labor Union h.Investors and Banker i.Supplier and Banker -The company's labor rate agree to the last contract.

The company's annual report includes an audit report, notes to the financial statements, but not management's discussion and analysis.

In which form of organization are the owners' legal responsibility for the debt of the business limited to the amount they invested in the business?

A company with healthy cash flows from operating activities is in a good position to repay its debts.

Three common categories of long-term assets are: 1)property, plant, and equipment, 2)long-term investments, and 3)intangibles.

Contributed capital is the residual interest that remains after deducting liabilities from stockholders' equity.