The income statement shows amounts for:
revenues, gains, expenses and losses.
Which classification of accounting is most concerned with the use of economic and financial information to plan and control many of the activities of the entity?
A concept or principle that relates to transactions is:
is designed to match revenues and expenses.
Which of the following is not an example of a decision or informed judgment that a potential investor would make from accounting information?
Probability of success of a new product development.
The going concern concept refers to a presumption that:
the entity will continue to operate in the foreseeable future.
Accumulated depreciation on a balance sheet:
Represents the portion of the cost of an asset that is assumed to have been "used up" in the process of operating the business.
Cost accounting is a subset of which of the following?
The provisions of the Sarbanes-Oxley Act of 2002 had the following components:
A, B and C are correct.
The balance sheet of an entity:
shows amounts that are not adjusted for changes in the purchasing power of the dollar.
A fiscal year:
is frequently selected based on the firm's operating cycle.
The principle of consistency means that:
the effect of any change in an accounting method will be disclosed in the financial statements or notes thereto.
At the beginning of the year, paid-in capital was $82 and retained earnings was $47. During the year, the owners invested $24 and dividends of $6 were declared and paid. Retained earnings at the end of the year were $52. Total owners' equity at the end of the year was:
Major classifications of accounting activity would not include:
financial accounting, national accounting, cost accounting.
Which of the following is not an example of a decision or informed judgment that a potential employee could make from accounting information?
Personnel turnover statistics (i.e., hiring and terminations).
Consolidated financial statements report financial position, results of operations, and cash flows for:
a parent corporation and its subsidiaries.
Which of the following is not a transaction to be recorded in the accounting records of an entity?
Receipt of a plaque recognizing the firm's encouragement of employee participation in the United Way fund drive.
At the beginning of the fiscal year, the balance sheet showed assets of $1,364 and owners' equity of $836. During the year, assets increased $74 and liabilities decreased $38. Owners' equity at the end of the year totaled:
The objectives of financial reporting for nonbusiness enterprises:
Focus on providing information for resource providers, rather than investors.
The purpose of the income statement is to show the:
net income or net loss for the period covered by the statement.