21. What does a company's statement of cash flows tell you about the company?
22. If a corporation issues common stock for $50,000 cash, in which section of the statement of cash flows will this transaction be reported?
23. Which types of accounts are closed out to retained earnings at the end of an accounting period?
24. Name and briefly describe each of the four financial statements.
25. Define the term "accounting period." How does this term relate to the “matching concept” as it pertains to the income statement?
Multiple Choice Questions
26. Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United States?
A. Securities and Exchange Commission.
B. U.S. Congress.
C. International Accounting Standards Board.
D. Financial Accounting Standards Board.
27. The Heritage Company is a manufacturer of office furniture. Which term best describes Heritage's role in society?
A. Conversion agent
B. Regulatory agency
C. Consumer
D. Resource owner
28. Which resource providers lend financial resources to a business with the expectation of repayment with interest?
A. Consumers
B. Creditors
C. Investors
D. Owners
29. Which type of accounting information is intended to satisfy the needs of external users of accounting information?
A. Cost accounting
B. Managerial accounting
C. Tax accounting
D. Financial accounting
30. Which of the following is
false
regarding managerial accounting information?
A. It is often used by investors.
B. It is more detailed than financial accounting information.
C. It can include nonfinancial information.
D. It focuses on divisional rather than overall profitability.