Investing activities
Transactions of a company that include the purchase and sale of resources that are expected to benefit the company for several years are referred to as:
Financing activities
Transactions the company has with investors and creditors
The accounts that represent the resources of the company are called
Assets
Liabilities are best defined as
amounts owed to creditors
Owners’ claims to the company’s resources are referred to as:
stockholders’ equity
An amount recognized when the company sells products or provides services to a customer
revenue
expenses are best described as
The costs of providing goods and services to customers are referred to as:
Dividends represent:
Distributions (most often cash) to the owners of the company.
The equation best describing the income statement is:
Revenues − Expenses = Net Income.
Generally accepted accounting principles (GAAP) are best defined as
The formal standards that have been established for the purpose of reporting financial accounting information.
Current assets include cash and all other assets expected to become cash or be consumed within one…?
Year or one operating cycle, if longer than one year.
Which financial statement provides information at a point in time only?
Balance sheet
Rent collected in advance is a(n):
Liability account in the balance sheet.
Accounts receivable
money owed to a business by its customers for goods or services that have been delivered but not yet paid for.
In other words — the company has made a sale on credit, and it’s waiting to get paid.
