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accounting test 1: smart book 1 questions with complete solutions
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accounting test 1: smart book 1 questions with complete solutions
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accounting test 1: smart book 1the system that maintains records of a company’s operations and then communicates that information’s
to decision makers is referred to as - correct answer ✔✔accounting
what's included on the asset side of a balance sheet - correct answer ✔✔cash
accounts receivable
supplies
equipment
other assets
what's included on the liabilities side of a balance sheet - correct answer ✔✔accounts payable
salaries payable
utilities payable
interest payable
notes payable
other liabilities
what's included on the stock holders equity side of the balance sheet - correct answer ✔✔common
stock
retained earnings
what are the three major aspects on a balance sheet - correct answer ✔✔assets
liabilities
stockholders equity
what's the accounting equation - correct answer ✔✔assets = liabilities + stockholders equity
, the financial statement that is most useful in explaining a companies stock price performance is the -
correct answer ✔✔income statement
a business organization that is legally separate from its owners is called - correct answer ✔✔corporation
what are the three most common forms of business organizations - correct answer ✔✔sole
proprietorship
corporation
partnership
Companies communicate information about their business activities primarily through - correct answer
✔✔financial statements
The four financial statements published to provide information to external users include which of the
following? - correct answer ✔✔income statement
balance sheet
statement of stockholders equity
statement of cash flows
what financial statement reports revenues and expenses - correct answer ✔✔income statement
Predictive value and confirmatory value are components of which fundamental qualitative
characteristic? - correct answer ✔✔relevance
The impact of financial accounting information on investors' and creditors' decisions is closely related to
the concept of: - correct answer ✔✔materiality
relevance - correct answer ✔✔accounting information should possess confirmatory value and/or
predictive value
confirmatory value - correct answer ✔✔net income
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