BUS-A 304 EXAM 1 QUESTIONS AND ANSWERS
The objective of financial reporting is - Answers :to provide financial information useful
to existing and potential investors, lenders, and other creditors in making decisions
about providing resources to the entity
What is the order in filling out financial statements? - Answers :Income Statement
Statement of Stockholders Equity
Balance Sheet
Statement of Cash Flows
balance sheet - Answers :reports the financial position (amount of assets, liabilities, and
stockholders' equity) at a point in time
Income Statement - Answers :reports the revenues less the expenses during the
accounting period
statement of stockholders' equity - Answers :reports the changes in each of the
company's stockholders' equity accounts, including the change in the retained earnings
balance caused by net income and dividends, during the reporting period
statement of cash flows - Answers :reports inflows and outflows of cash during the
accounting period in the categories of operating, investing, and financing
The balance sheet is prepared at ________.
All other statements are prepared for a ________. - Answers :a point in time
period of time
prepared at the end of the year/period - Answers :for the year/period ended
prepared quarterly - Answers :for the quarter ended
prepared monthly - Answers :for the month ended
What does the financial statement headings include? - Answers :Name of the entity
Title of the statement
Specific date of the statement
Unit of measure (in millions of dollars)
What is the accounting equation? - Answers :Assets = Liabilities + Stockholders' Equity
From the firms perspective, debt is considered ______ than equity. - Answers :riskier
assets are listed by their _______ - Answers :liquidity
BOTTOM LINE - Answers :Net earnings of a firm after expenses.
The objective of financial reporting is - Answers :to provide financial information useful
to existing and potential investors, lenders, and other creditors in making decisions
about providing resources to the entity
What is the order in filling out financial statements? - Answers :Income Statement
Statement of Stockholders Equity
Balance Sheet
Statement of Cash Flows
balance sheet - Answers :reports the financial position (amount of assets, liabilities, and
stockholders' equity) at a point in time
Income Statement - Answers :reports the revenues less the expenses during the
accounting period
statement of stockholders' equity - Answers :reports the changes in each of the
company's stockholders' equity accounts, including the change in the retained earnings
balance caused by net income and dividends, during the reporting period
statement of cash flows - Answers :reports inflows and outflows of cash during the
accounting period in the categories of operating, investing, and financing
The balance sheet is prepared at ________.
All other statements are prepared for a ________. - Answers :a point in time
period of time
prepared at the end of the year/period - Answers :for the year/period ended
prepared quarterly - Answers :for the quarter ended
prepared monthly - Answers :for the month ended
What does the financial statement headings include? - Answers :Name of the entity
Title of the statement
Specific date of the statement
Unit of measure (in millions of dollars)
What is the accounting equation? - Answers :Assets = Liabilities + Stockholders' Equity
From the firms perspective, debt is considered ______ than equity. - Answers :riskier
assets are listed by their _______ - Answers :liquidity
BOTTOM LINE - Answers :Net earnings of a firm after expenses.
