Financial Accounting Ch 7

67. Which of the following statements is NOT correct about the financial statements?
A. An income statement reports revenues, expenses, and net income information.
B. The statement of stockholders' equity presents common stock, dividends, and retained earnings information.
C. A balance sheet reports assets, liabilities, revenues, and expenses.
D. The statement of cash flows shows cash inflows and outflows from operating, financing, and investing activities. – C. A balance sheet reports assets, liabilities, revenues, and expenses.
The Fundamental Accounting Equation – Assets = Liabilities + Owner Equity
statement of cash flows – Reports cash receipts and cash payments classified according to the entity's major activites: operating, investing, and financing.
Journal entries that a company makes at the end of its accounting period to bring the company's revenue and expense account balances up-to-date and to show the correct ending balances in its asset and liability accounts – Adjusting Entry
Prepaid Rent – Normal Balance: Debit
Type of Account: Asset
Financial Statement: BS
accounting event – an economic occurrence that changes an enterprise's assets, liabilities, or stockholder's equity
Partnership – A business with two or more owners and is not organized as a corporation
expenses – Assets used up or services consumed in the process of generating revenues.
Controlling involves gathering feedback to ensure that the plan is being properly executed or modified as circumstances change.
bond – долговое обязательство (ценная бумага, выпущенная компанией или правительством, владельцу которой обещан возврат в определенный срок взятых в долг денег и периодическая выплата процентов по фиксированной ставке)
Credit terms – When the oayment is due and if any discount are offered
Income statement – A statement that summarizes revenue and expense to determine the net income or net loss.
Acquisition/Payment Process – acquire, maintain, and pay for the resources needed by the organization
Account Form – Assets on the left side and Liabilities and owner's equity on the right.
Cоntrоlling invоlves gаthering feedbаck to ensure thаt the plan is being properly executed or modified as circumstances change.
Debit – amount recorded on left

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