Exam 1: Accounting As a Form of Communication

____________________ is the process of writing off the cost of tangible assets and ____________________ is the process of writing off the cost of intangible assets.

The time period assumption assumes a company prepares financial statements every month.

If an investor can use accounting information for two different companies to evaluate the types and amounts of expenses, the information is said to have the quality of:

Hopper, Inc. Use the information from Hopper Inc. to answer the following questions. -Read the information about Hopper. Inc. Which statement best represents Hopper's performance?

The various methods, rules, practices, and other procedures that have evolved over time in response to the need to regulate the preparation of financial statements are called __________________________________________________.

Which concept is the reason the dollar is used in the preparation of financial statements?

Assets may be used to satisfy business obligations and to carry on business operations.

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement. -Consulting revenues

For each item listed, select the section of the balance sheet in which the item would be reported. -Interest payable

For each statement provided, choose the letter of the appropriate term from the list that each statement best describes. Some terms may be used more than once, while others are not used at all. -The portion of owner's equity that represents the net income less any dividends paid over the life of the entity.

Service-oriented companies have different needs than product-oriented companies when analyzing financial statements. REQUIRED: Why is this true? Give an example of a financial ratio that is meaningless to a service business.

Read the information about Burke Company. Required: Prepare a multiple-step income statement for the year ended December 31, 2014.

What financial statement items are investors and creditors most interested in and why?

All of the following are important provisions of the Sarbanes-Oxley Act except:

Which one of the following items is correct concerning the time element of financial statements?

What is the purpose of an income statement?

On January 1, 2015, Flaggler Company's balance in retained earnings was $70,000. During 2015, the company earned net income of $43,000 and paid $15,000 in dividends. Calculate the retained earnings balance at December 31, 2015.

Which one of the following is a correct expression of the accounting equation?

Several items from the financial statements of Standard Tires are listed below. Use the following answer choices to identify the type of account for each item listed. Place your answers in the space provided. -Property, plant, and equipment

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement. -Service revenues