Exam 1: Introduction to Financial Statements

Which of the following is not a common way that managers use the balance sheet?

Operating activities involve putting the resources of the business into action to generate a profit.

Dividends paid

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

One way of stating the accounting equation is Assets + Liabilities = Stockholders' Equity.

An annual report includes all of the following except

Which of the following clarifies information presented in the financial statements, as well as expanding upon it where additional detail is needed?

Jimmy's Repair Shop started the year with total assets of $300,000 and total liabilities of $240,000.During the year, the business recorded $630,000 in revenues, $330,000 in expenses, and dividends of $60,000.Stockholders' equity at the end of the year was

Marvin Services Corporation had the following accounts and balances: If Martin pays $5,000 of Accounts Payable in cash, total stockholders' equity would be

To show how successfully your business performed during a period of time, you would report its revenues and expenses in the

Common stock is reported on the

The proprietorship form of business organization

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

Expenses are incurred

An advantage of the corporate form of business is that

Benedict Company compiled the following financial information as of December 31, 2022: Benedict's retained earnings balance at December 31, 2022 is

If the assets owned by a business total $150,000 and liabilities total $105,000, then stockholders' equity totals $45,000.

Which of the following is not not one of the three forms of business organization?

Net income for the period is determined by subtracting expenses and dividends from revenues.

The right to receive money in the future is called a(n)