81) Retained earnings appears on which of the following financial statements? A) statement of retained earnings, cash flow statement, and income statement, but not the balance sheet B) statement...





81) Retained earnings appears on which of the following financial statements?



A) statement of retained earnings, cash flow statement, and income statement, but not the balance sheet



B) statement of retained earnings and balance sheet, but not the income statement or cash flow statement



C) statement of retained earnings, cash flow statement, and balance sheet, but not the income statement



D) statement of retained earnings and cash flow statement, but not the income statement or balance sheet



82) Since they are both the same activities, the terms "accounting" and "bookkeeping" are synonymous and can be used interchangeably.



83) The three forms of business organizations are sole proprietorships, partnerships, and non-profit organizations.



84) Accounting is called an information system since it measures business activities, processes data into reports, and communicates results to decision makers.



85) From a legal perspective, sole proprietors, partners and shareholders are personally liable for the debts of their businesses they invest in.



86) From an accounting viewpoint, a proprietorship is a distinct and separate entity from the proprietor.



87) A form of the accounting equation can be stated as Assets - Liabilities = Share capital + Retained earnings.



88) The accounting equation must always be in balance.



89) Liabilities are often referred to as "outsider claims" and owners' equity as "insider claims" to assets.



90) Shareholders' equity is often referred to as "net assets" and represents the residual amount of business assets that can be claimed by the owners.



May 15, 2022
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