Ch. 1 Fundamentals of Accounting
Study Guide Exam And Correct
Answers.
Accounting Entity - Answer the organization for which financial data are to be collected
Accounting Period - Answer the time period covered by the financial statements
Audit - Answer an examination of the financial reports to ensure that they represent what they claim
and conform with generally accepted accounting principles
Balance Sheet (Statement of Financial Position) - Answer Reports the amount of assets, liabilities, and
stockholders' equity of an accounting entity at a point in time
Basic Accounting Equation (Balance Sheet Equation) - Answer Assets = Liabilities + Stockholders' Equity
Generally Accepted Accounting Principles (GAAP) - Answer the measurement and disclosure rules used
to develop the information in the financial statements
Income Statement (Statement of Income, Statement of Earnings, Statement of Operations, Statement of
Comprehensive Income) - Answer reports the revenues less the expenses of the accounting period
Notes (Footnotes) - Answer provide supplemental information about the financial condition of a
company, without which the financial statements cannot be fully understood
Statement of Cash Flows (Cash Flow Statements) - Answer reports the inflows and outflows of cash
during the accounting period in the categories of operating, investing, and financing
Statement of Stockholders' Equity - Answer reports the way that net income and the distribution of
dividends affected the financial position of the company during the accounting period
Study Guide Exam And Correct
Answers.
Accounting Entity - Answer the organization for which financial data are to be collected
Accounting Period - Answer the time period covered by the financial statements
Audit - Answer an examination of the financial reports to ensure that they represent what they claim
and conform with generally accepted accounting principles
Balance Sheet (Statement of Financial Position) - Answer Reports the amount of assets, liabilities, and
stockholders' equity of an accounting entity at a point in time
Basic Accounting Equation (Balance Sheet Equation) - Answer Assets = Liabilities + Stockholders' Equity
Generally Accepted Accounting Principles (GAAP) - Answer the measurement and disclosure rules used
to develop the information in the financial statements
Income Statement (Statement of Income, Statement of Earnings, Statement of Operations, Statement of
Comprehensive Income) - Answer reports the revenues less the expenses of the accounting period
Notes (Footnotes) - Answer provide supplemental information about the financial condition of a
company, without which the financial statements cannot be fully understood
Statement of Cash Flows (Cash Flow Statements) - Answer reports the inflows and outflows of cash
during the accounting period in the categories of operating, investing, and financing
Statement of Stockholders' Equity - Answer reports the way that net income and the distribution of
dividends affected the financial position of the company during the accounting period
