ACCT 5110 (graded A+ and with verified solutions available)

Funds a company receives from shareholders are often called: Paid-in capital Net income Dividends Retained earnings - ANSPaid-in capital The Securities and Exchange Commission creates accounting standards. T/F - ANSFalse Privately held companies must produce financial statements that conform to U.S. GAAP. T/F - ANSFalse According to the FASB, accounting information should be (choose up to four answers): Comparable Reliable Conservative Timely - ANSComparable Reliable Timely The main reason companies make adjusting entries is to remediate instances of accounting fraud. T/F - ANSFalse Sasha wants to learn how much cash a company received last year related to interest and dividends from its investments. You should advise Sasha to look at that company's: Statement of cash flows Statement of other comprehensive income Income statement Balance sheet - ANSStatement of cash flows The accounting equation is: Assets = Liabilities + Shareholders' Dividends Assets = Liabilities - Shareholders' Equity Assets = Liabilities + Debt Assets = Liabilities + Shareholders' Equity - ANSAssets = Liabilities + Shareholders' Equity Retained earnings is equivalent to a company's net income for an accounting period. T/F - ANSFalse