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24 Cards in this Set
- Front
- Back
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Sarbanes Oxley act
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Top management must now certify the accuracy of financial information.
B. Penalties for fraudulent activity increased. C. Independence of auditors increased. TAX DID NOT INCREASE FOR CORP |
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three primary business activities?
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A. Financing.
B. Operating. D. Investing. |
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Net income equals
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Sales revenue less Salaries and Rent expense
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What section of a cash flow statement indicates the cash spent on new equipment during the past accounting period?
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The investing section.
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Which statement presents information as of a specific point in time?
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balance sheet
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Balance sheet reports
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assets, liabilities, and stockholders' equity
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liabilities can be computed by
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subtracting stockholders' equity from assets
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The segment of a corporation's annual report that describes the corporation's accounting methods is the:
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A. notes to the financial statements.
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Which entity itself is taxed?
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Only corporations, others have individuals taxed.
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Stockholders are what type of users?
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They are external users.
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Interest expense would be classified under
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operating activities
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The notes to the financial statements are
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required
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The Statement of Cash Flows is divided into
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cash flows from operating activities, cash flows from investing activities and cash flows from financing activities
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Paying interest expense and receiving interest revenue are examples of:
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operating activities
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The payment of dividends is an example of a(n):
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Financing activity.
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Cost of goods sold is classified as what type account?
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expense
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What appears on an income statement?
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Service revenue
B. Interest expense C. Net income NOT DIVIDENDS |
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What appears on the retained earnings statement
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. Beginning retained earning balance
B. Dividends D. Net income |
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The financial statements are usually prepared in which of the following sequences?
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Income statement, retained earnings statement, balance sheet, and statement of cash flows
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Calculating stock equity in Retained Earnings Statement
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stockholders' equity + net income -dividends
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assets =
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Liabilities + Stockholders' Equity
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A qualified opinion is utilized when
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the auditor has a limitation of scope within the audit or there is a violation of generally accepted accounting principles
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ending retained earnings balance appears on
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Both the retained earnings statement and the balance sheet.
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Gross profit is equal to
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sales revenue minus cost of goods sold
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