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13 Cards in this Set
- Front
- Back
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Publicly traded companies must file audited financial statements with the:
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SEC.
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The normal order in which the financial statements are prepared is:
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Income statement, statement of retained earnings, balance sheet.
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Net income from the Income Statement appears on:
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The Retained Earnings Statement.
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A statement of retained earnings shows:
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The changes in the Retained Earnings account occurring during the accounting period.
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The Retained Earnings statement is based upon which of the following relationships?
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Retained Earnings + Net Income - Dividends.
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Dividends will have what effect upon retained earnings?
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Decrease.
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Assets are considered current assets if they are cash or will usually be converted into cash:
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Within a year or less.
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The purpose of making closing entries is to:
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Prepare revenue and expense accounts for the recording of the next period's revenue and expenses.
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During the closing process
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All revenue accounts are debited and expense accounts are credited.
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Which account will appear on an after-closing trial balance?
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Prepaid Expenses.
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Return on equity measures:
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Profitability.
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Return on equity is calculated by:
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Dividing net income by average stockholders' equity.
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Interim financial statements:
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Cover a period less than one year.
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