acct exam 1 questions & answers 2023/2024

acct exam 1 questions & answers 2023/2024 Income statement - ANSWER-revenue-expenses=net income (loss) -NET INCOME IS NEEDED TO DETERMINE THE ENDING BALANCE IN RETAINED EARNINGS statement of retained earnings - ANSWER-beginning retained earnings+net income-dividends=end retained earnings balance sheet - ANSWER-Assets=Liabilities+Stockholders equity Stockholders equity=common stock+ending retained earnings statement of cash flows - ANSWER-detailed statement on cash (asset) retained earnings statements facts - ANSWER--time period is the same as covered by income statement -users can evaluate dividend payment practices -ending balance in retained earnings is needed in preparing the balance sheet balance sheet - ANSWER--reports assets and claims assets at a specific point in time -lists assets first, followed by liabilities and stockholders equity -equation: Liabilities+stockholders equity statement of cash flows - ANSWER-how was cash used?