acc 200 chapter 4 pt. 1

How do financial statements primarily relate to each other?

In which order are assets typically listed on a classified balance sheet?

Which financial statement reports revenues and expenses to calculate net income or net loss for a specific period?

Which of the following describes the purpose of the statement of retained earnings?

Which financial statement reports a company’s assets, liabilities, and stockholders’ equity at a specific point in time?

What is the primary source of information used to prepare financial statements?

Which of the following is the correct flow for the financial statement relationship?

Which of the following is the best definition of 'liquidity' in the context of a classified balance sheet?

What distinguishes current assets from long-term assets?

How are current liabilities typically defined?

Which of the following accounts would most likely be classified as a current asset?

Which of the following accounts is most likely to be classified as a current liability?

What is the term for the span of time during which a company uses cash to acquire goods and services that are then sold to customers, who in turn pay the company?

In the absence of retained earnings and net income, what would cause retained earnings to decrease?

Which factor differentiates long-term investments from property, plant, and equipment (PP&E) on a classified balance sheet?

If a company uses the account form for its balance sheet, how are assets, liabilities, and equity presented?

If a company prepares a classified balance sheet using the report form presentation, how would the main sections typically appear?

A company's net income for the year was $50,000, and it declared and paid dividends of $10,000. If the beginning retained earnings balance was $30,000, what is the ending retained earnings balance?

Considering the relationship between the income statement, statement of retained earnings, and balance sheet, if a company incorrectly overstated its ending inventory, what effect would this error have on the subsequent financial statements?

A company has cash of $20,000, accounts receivable of $30,000, and prepaid expenses of $5,000. It also has accounts payable of $15,000, salaries payable of $10,000, and notes payable (due in 9 months) of $25,000. What is the total of the company's current assets?

Using the following information, calculate total current liabilities: Accounts Payable: $10,000, Salaries Payable: $5,000, Unearned Revenue: $3,000, Bonds Payable (due in 5 years): $20,000.

A company's balance sheet shows total assets of $500,000 and total liabilities of $200,000. What is the total stockholders' equity?

Which of the following is an example of a long-term liability?

Which of the following best describes the purpose of preparing financial statements?

Where on the balance sheet does the ending retained earnings balance appear?