Exam 1: Introduction to Financial Statements

Jackson Company recorded the following cash transactions for the year: Paid $\$ 135,000$ for salaries. Paid $\$ 60,000$ to purchase office equipment. Paid $\$ 15,000$ for utilities. Paid $\$ 6,000$ in dividends. Collected $\$ 275,000$ from customers. What was Jackson's net cash provided by operating activities?

Debts and obligations of a business are referred to as

The management discussion and analysis (MD & A) section of an annual report covers various financial aspects of a company.

If the retained earnings account decreases from the beginning of the year to the end of the year, then

A small neighborhood barber shop that is operated by its owner would likely be organized as a

A balance sheet shows

U.S. standards are referred to as

Examples of notes are descriptions of the significant accounting policies and methods used in preparing the statements, explanations of contingencies, and various statistics.

Financial accounting ethics violations are

Stockholders' equity

Claims of creditors and owners on the assets of a business are called liabilities.

Stockholders' equity is comprised of

The liability of corporate stockholders is limited to the amount of their investment.

The best definition of assets is the

The heading on the statement of cash flows identifies all of the following except

Resources owned by a business are referred to as

Management's views on the company's short-term debt paying ability, expansion financing, and results of operations are found in the

Which of the following financial statements is concerned with the company at a point in time?

Claims of owners are called

A business is usually involved in two types of activity-financing and investing.