Accounting 201 Creighton University Questions With 100% Correct Answers.

The 3 forms of business organizations - sole proprietorship, partnership, corporation 2 uses of financial information - Internal (such as management, marketing, and finance) External (such as shareholders, creditors, and regulators) 4 general purpose financial statements - income statement, statement of retained earnings, balance sheet, and statement of cash flows What information do you take from the income statement to use on the statement of retained earnings? - Net income What information do you take from the statement of retained earnings to use on the balance sheet? - Ending retained earnings What information do you take from the statement of retained earnings to use on the statement of cash flows? - Ending cash The 3 types of business activity - financing, investing, operating Financing Activities - borrowing money, issuing shares of stock, and paying dividends Investing Activities - Activities that increase or decrease the long-term assets available to the business (a section on the statement of cash flows) Operating Activities - Revenues and Expenses Income Statement Equation - Revenues - Expenses = Net IncomeStatement of Retained Earnings Equation - Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings Balance Sheet Equation - Assets = Liabilities + Stockholders' Equity Asset Types - Current assets, long-term assets, property plant and equipment, and intangible assets Liability Types - Current Liabilities, long-term liabilities Stockholders' Equity Types - Common Stock, Retained Earnings