PACE REVIEW TEST
Financial Accounting - ANSWER used in preparing general purpose financial
statements such as income statements, retained earnings statements, balance
sheets, and statements of cash flows
Income Statement - ANSWER reports a firm's profitability for some time as
measured by the excess of revenues over expenses
Revenues - ANSWER increases in net assets resulting from sales of goods or
services
Expenses - ANSWER costs incurred to generate the revenues
Retained Earnings Statement - ANSWER reconciles the beginning balance of
RE for the period to the ending balance of RE for the period
Net Income ___ RE - ANSWER increases
Net Loss ___ RE - ANSWER decreases
Dividends ___ RE - ANSWER decrease
Balance Sheet - ANSWER reports a firms assets, liabilities, and stockholders
equity at a point in time
Assets - ANSWER measurable resources of a firm
Financial Accounting - ANSWER used in preparing general purpose financial
statements such as income statements, retained earnings statements, balance
sheets, and statements of cash flows
Income Statement - ANSWER reports a firm's profitability for some time as
measured by the excess of revenues over expenses
Revenues - ANSWER increases in net assets resulting from sales of goods or
services
Expenses - ANSWER costs incurred to generate the revenues
Retained Earnings Statement - ANSWER reconciles the beginning balance of
RE for the period to the ending balance of RE for the period
Net Income ___ RE - ANSWER increases
Net Loss ___ RE - ANSWER decreases
Dividends ___ RE - ANSWER decrease
Balance Sheet - ANSWER reports a firms assets, liabilities, and stockholders
equity at a point in time
Assets - ANSWER measurable resources of a firm
