Exam 1: Overview of Corporate Financial Reporting

List the three types of business activities that are measured and reflected on the cash flow statement and provide three examples of transactions found within each activity.

Dividends are paid when approved by the

The following data was taken from the books of Peanut Inc. as of December 31, 2020: Cost of goods sold $ 15,300 Selling & administrative expense $3,500 Income tax expense 6,120 Accounts payable 12,000 Cash 3,500 Common shares, (3,250 shares) 20,000 Retained earnings (Jan 1) 8,000 Dividends 6,000 Other income 1,500 Interest expense 900 Sales revenue 35,000 Depreciation expense 1,500 Equipment 39,680 Instructions a) Calculate total assets. b) Calculate total revenue and expenses. c) Calculate total liabilities.

The accounting equation is

Goods held for resale to customers are called

Which of the following is the basic accounting equation?

An example of an investing activity is

Financial Accounting is also referred to as

Match each of the following activities to the transactions listed below by placing the appropriate letter in the space provided.

A characteristic of an asset is

Those who lend money or otherwise extend credit rather than invest it directly are known as

Liquidity refers to how long something will be received, realized, or consumed.

Expenses are defined as increases in economic benefits.

Operating activities include all of the following except

Which of the following is the proper order to list current assets on the Statement of Financial Position?

The section of an annual report that contains management's discussion of the company's operating results is referred to as the Statement of Management's Responsibility.

Briefly explain the relationship between the management, the board of directors, and the shareholders in a public company.

Which of the following is not a typical operating activity?

Who determines how much of earnings will be paid as dividends?

A firm's activities can be divided into borrowing, investing, and operating.