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Ch 1 Acct

Terms in this set (16)

If a company's total assets decreased while liabilities and common stock were unchanged, and no dividends were paid, then
revenues were less than expenses
A company mistakenly recorded a cash purchase of land as an expense. As a result of this error
Assets and equity were understated
The transaction, "earned cash revenue," affects which two accounts?
Cash and Revenue
Which of the following statements regarding cash transactions is true?
1. Revenue transactions decrease assets.
2. Issuance of stock to owners increases assets.
3. Expense transactions increase assets.
2. Issuance of stock to owners increases assets.
Which of the following items appears in the investing activities section of the statement of cash flows?
1. Cash inflow from interest revenue.
2. Cash outflow for the payment of salary expenses.
3. Cash outflow for the purchase of a computer.
4. Cash inflow from the issuance of common stock.
3. Cash outflow for the purchase of a computer.
What financial statements provides information about a company as of a specific point in time?
Balance Sheet
Which financial statement matches asset increases from operating a business with asset decreases from operating the business?
Income Statement
Which of the following items would appear in the cash flow from the financing activities section of a statement of cash flows?
1. Sold land for cash.
2. Paid cash for dividends.
3. Loaned cash to another company.
4. Paid cash for expenses.
2. Paid cash for dividends.
Expenses are shown on the
income statement.
What group has the primary responsibility for establishing generally accepted accounting principles for business entities in the United States?
Financial Accounting Standards Board
Which type of accounting information is intended to satisfy the needs of external users of accounting information?
Financial accounting
Managerial accounting provides information primarily to which of the following groups or individuals?
Internal users
In which section of a statement of cash flows would the purchase of land for cash be reported?
Investing Activities
Dividends paid by a company are shown on the
income statement and statement of changes in stockholders' equity.
"IASB" stands for
International Accounting Standards Board
Liabilities are shown on the
balance sheet
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