Goals Achievement: Chapter One
Accounting information is useful only to the owners of a business.
Which of the following branches of accounting is concerned primarily with external reporting or communicating the results of economic activities to parties outside the firm?
The objectivity principle relates to the historical-cost principle in a manner which is:
Many accounting measurements are based on the historical-cost principle, which holds that assets and liabilities are initially entered into the accounting records at acquisition cost, but subsequently change as market values change.
Which of the following areas of the accounting profession is sometimes referred to as industry accounting?
Accountants have developed ethical standards that pertain to financial record keeping and reporting.
The economic resources owned by a company that are expected to benefit future periods are:
The residual ownership share of a particular entity may be referred to as:
Withdrawals of assets by the stockholders ("dividends") causes retained earnings to:
The term "revenues" means net income.
A company could experience a net loss and have dividends during the same accounting period.
Purchase of assets for cash cause total assets to:
Payment of accounts payable with cash cause retained earnings to:
The income statement is a statement:
Which financial statement most closely corresponds to the accounting equation?