PACE Exam Review Questions with complete solution

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