D774 - Section 2 - Lesson 4 with actual
questions and answers
, Balance Sheet - correct ans:Prepared as of a point in time
articulation - correct ans:relationship between an operating statement (the
income statement or the statement of cash flows) and comparative balance
sheets
an item on the operating statement helps explain the change in an item on
the balance sheet from one period to the next
statement of retained earnings - correct ans:shows how the retained
earnings balance changes from one period to the next
retained earnings increase when - correct ans:a company reports net income
reatined earnings decrease when - correct ans:a company distributes
earnings to owners through paying dividends or has a net loss
The interrelationships between 3 financial statements provide insite into the
changes in chase and retained earnings balances between 2 consecutive
periods' balance sheets - correct ans:
Because cash and retained earnings balances are such important parts of the
balance sheet, understanding company's income statement and cash flow
statement is key for understanding the balance sheet and determining how
the numbers changed - correct ans:
Articulation between the financial statements helps financial statement users
see the complete financial picture of a company and understand what causes
changes in financial statement balances - correct ans:
Here are some financial statement items for Esalante Company.
net income for the year
net increase or decrease in cash during the year
questions and answers
, Balance Sheet - correct ans:Prepared as of a point in time
articulation - correct ans:relationship between an operating statement (the
income statement or the statement of cash flows) and comparative balance
sheets
an item on the operating statement helps explain the change in an item on
the balance sheet from one period to the next
statement of retained earnings - correct ans:shows how the retained
earnings balance changes from one period to the next
retained earnings increase when - correct ans:a company reports net income
reatined earnings decrease when - correct ans:a company distributes
earnings to owners through paying dividends or has a net loss
The interrelationships between 3 financial statements provide insite into the
changes in chase and retained earnings balances between 2 consecutive
periods' balance sheets - correct ans:
Because cash and retained earnings balances are such important parts of the
balance sheet, understanding company's income statement and cash flow
statement is key for understanding the balance sheet and determining how
the numbers changed - correct ans:
Articulation between the financial statements helps financial statement users
see the complete financial picture of a company and understand what causes
changes in financial statement balances - correct ans:
Here are some financial statement items for Esalante Company.
net income for the year
net increase or decrease in cash during the year
