Exam 1: The Financial Statements

The American Institute of Certified Public Accountants (AICPA)Code of Professional Conduct contains basic principles that provide guidance to all members in the performance of their professional duties.List three of these principles.Briefly discuss how each of these three principles affects AICPA members.

Current liabilities as reported on the balance sheet do NOT include:

The relevant measure of the value of the assets of a company that is going out of business is the:

Potter Company reports the following line items: What is net income?

Liabilities are:

The balance sheet is also called the statement of financial position.

Revenues are cash distributions to the stockholders.

Advantages of a corporation include:

Which of the following characteristics does NOT apply to verifiability?

All of the following are true statements about the entity assumption EXCEPT for:

Every corporation must pay dividends every year.

Each category of activities on the statement of cash flows results in net cash provided or net cash used.

Gerald Company has the following account balances at the end of the first year of operations: What are total assets at the end of the first year?

The two main components of stockholders' equity are paid-in capital and dividends.

Dividends declared are reported on the:

Kolander Company has the following accounts and balances at the end of the year: What is the amount of Retained Earnings at the end of the year?

The order in which current assets are typically listed is:

In order to compare the financial statements of Toyota Corporation to the financial statements of General Motors,it would be preferable to use:

The three factors that influence business and accounting decisions are economic,legal,and financial.

The business records of a sole proprietorship should include the proprietor's personal finances.