| Question |
Answer |
| A manufacturing business: |
is an organization that changes basic inputs into products that are sold to individual customers. |
| Accounting is defined as: |
an information system that provides reports to shareholders about the economic activities and condition of a business. |
| Which of the following best describes accounting? |
Can be thought of as the "language of business." |
| The accounting equation can be expressed in all of the following ways EXCEPT: |
liabilities = assets + stockholders' equity. |
| Which of the following is true regarding business transactions? |
All business transactions can be stated in terms of changes in the elements of the accounting equation. |
| The financial statements and the order in which they are prepared is: |
Income Statement, Retained Earnings Statement, Balance Sheet, and Statement of Cash Flows. |
| The Income Statement: |
reports the revenues and expenses for a period of time based on the matching concept. |
| Retained Earnings Statement: |
reports the changes in retained earnings for a period of time. |
| The Balance Sheet: |
reports the amount of an organization's assets, liabilities, and stockholders' equity at the end of a period. |
| The Statement of Cash Flows: |
consists of three sections-(1) operating activities, (2) investing activities, and (3) financing activities. |
500 Words
