D196 - Principles of Financial and
Managerial Accounting; Unit 3
Questions and All Correct Answers.
Primary Financial Statements - Answer The balance sheet, income statement, and the
statement of cash flows, which are used by external groups to assess a company's economic
standing.
Balance Sheet - Answer The financial statement that reports a company's assets, liabilities,
and owner's equity are a particular date. Must always balance. AKA Statement of Financial
Position. What do I have and what do I owe NOW?
Income Statement - Answer The financial statement that reports the amount of net income
(or net loss) earned by a company during a period. Represents the accountant's best effort at
measuring the economic performance of a company.
Statement of Cash Flows - Answer The financial statement that reports the amount of cash
collected and paid out by a company during a period of time. For the same period of time as the
income statement. Represents the accountant's best effort at showing the change in cash during
a period of time.
Statement of Retained Earnings - Answer A financial statement that identifies the changes in
accumulated investments by owners and earnings or profits since day one. Though this is not a
primary statement, it is important because it links the income statement and balance sheet.
Form 10-K - Answer A form required by the SEC for businesses to report a comprehensive
summary of financial performance, including the three primary financial statements. Annually.
Required to be filed within 60 days of the end of the fiscal year.
Form 10-Q - Answer Quarterly financial reports that publicly traded companies must file
with the SEC.
Capital Stock - Answer The portion of stockholder's equity that represents investment by
owners in exchange for shares of stock; also referred to as paid-in capital.
Retained Earnings - Answer The amount of accumulated earnings of the business that have
not been distributed to owners.
Managerial Accounting; Unit 3
Questions and All Correct Answers.
Primary Financial Statements - Answer The balance sheet, income statement, and the
statement of cash flows, which are used by external groups to assess a company's economic
standing.
Balance Sheet - Answer The financial statement that reports a company's assets, liabilities,
and owner's equity are a particular date. Must always balance. AKA Statement of Financial
Position. What do I have and what do I owe NOW?
Income Statement - Answer The financial statement that reports the amount of net income
(or net loss) earned by a company during a period. Represents the accountant's best effort at
measuring the economic performance of a company.
Statement of Cash Flows - Answer The financial statement that reports the amount of cash
collected and paid out by a company during a period of time. For the same period of time as the
income statement. Represents the accountant's best effort at showing the change in cash during
a period of time.
Statement of Retained Earnings - Answer A financial statement that identifies the changes in
accumulated investments by owners and earnings or profits since day one. Though this is not a
primary statement, it is important because it links the income statement and balance sheet.
Form 10-K - Answer A form required by the SEC for businesses to report a comprehensive
summary of financial performance, including the three primary financial statements. Annually.
Required to be filed within 60 days of the end of the fiscal year.
Form 10-Q - Answer Quarterly financial reports that publicly traded companies must file
with the SEC.
Capital Stock - Answer The portion of stockholder's equity that represents investment by
owners in exchange for shares of stock; also referred to as paid-in capital.
Retained Earnings - Answer The amount of accumulated earnings of the business that have
not been distributed to owners.
