Exam 1: Introduction to Financial Statements

Borrowing money is an example of a(n)

Information in the notes to the financial statements has to be quantifiable (numeric).

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

Stockholders' equity is comprised of

The basic accounting equation states that Assets = Liabilities.

Benedict Company compiled the following financial information as of December 31, 2014: Benedict's stockholders' equity on December 31, 2014 is

If the assets owned by a business total $100,000 and liabilities total $65,000, stockholders' equity totals $25,000.

The best definition of assets is the

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

Net income results when

International standards are referred to as

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

Which of the following is a user of accounting information with an indirect financial interest in a business?

If total liabilities increased by $75,000 and stockholders' equity increased by $25,000 during a period of time, then total assets must change by what amount and direction during that same period?

Gibson Company recorded the following cash transactions for the year: Paid $180,000 for salaries. Paid $80,000 to purchase office equipment. Paid $20,000 for utilities. Paid $8,000 in dividends. Collected $310,000 from customers. What was Gibson's net cash provided by operating activities?

The proprietorship form of business organization

Dividends paid

All of the following are interrelationships that are important to understand when preparing financial statements except

Marvin Services Corporation had the following accounts and balances: If the balance of the Buildings account was $42,000 and $3,000 of Accounts Payable were paid in cash, what would be the balance of the total stockholders' equity?

Determine the missing items.