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10 Cards in this Set
- Front
- Back
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What is the order of the 4 statements that comprise a financial statements?
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1. Balance Sheet
2. Income Statement 3. Statement of Stockholders' Equity 4. Cash Flow Statement |
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What is the balance sheet?
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The balance sheet is a statement of financial position that reports dollar amounts for the assets, liabilities, and stockholders' equity at a specific point in time.
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What is the income statement?
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The balance sheet is a statement of financial position that reports dollar amounts for the assets, liabilities, and stockholders' equity at a specific point in time.
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What is the Statement of Stockholders' Equity?
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The balance sheet is a statement of financial position that reports dollar amounts for the assets, liabilities, and stockholders' equity at a specific point in time.
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What is the statement of cash flows?
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The balance sheet is a statement of financial position that reports dollar amounts for the assets, liabilities, and stockholders' equity at a specific point in time.
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Why are these 4 statements important/how are they used?
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The statements are used by investors and creditors to evaluate different aspects of the firm's financial position and performance.
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What is GAAP? What is it used for?
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GAAP [Generally Accepted Accounting Principles] are the measurement rules used to develop the information in financial statements. Knowledge of GAAP is necessary for accurate interpretation of the numbers in financial statements.
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Who has the primary responsibility for the accuracy of a company's financial information?
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Management
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What do auditors do?
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Auditors are responsible for expressing an opinion on the fairness of the financial statement presentations based on their examination of the reports and records of the company.
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What is accounting?
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A system that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers.
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