ABM Chapter 1 and 2 Review

The financial statement which shows the financial condition of the company.

• Statement of Comprehensive Income

• Statement of Changes in Owner's Equity

• Statement of Financial Position

• Cash Flow Statement

Bonds Payable is classified as

• Current Liabilities

• Non-current Assets

• Current Assets

• Non-current Liabilities

Users of financial information who are inside the reporting entity and are directly involved in managing the company's daily operations.

• Secondary Users

• Tertiary Users

• Primary Users

• None of the choices

The assets of the business are recorded at purchase prices regardless of their market values. What accounting principle is this?

• Objectivity

• Periodicity

• Historical Cost

• Adequate Disclosure

A completed action which can be expressed in monetary terms.

• Transaction

• Non-economic Event

• Business Activities

• Contract

A twelve-month period that starts on any month of the year other than January and ends twelve months after the starting period.

• Calendar Year

• Operational Year

• Natural Business Year

• Fiscal Year

An accounting principle which states that income should be recognized at the time it is earned such as when goods are delivered or when services have been rendered.

• Accrual Principle

• Consistency

• Materiality

• Going Concern

A certificate of indebtedness under the seal of a corporation.

• Loans Payable

• Mortgage Payable

• Notes Payable

• Bonds Payable

A sole proprietorship business should register with

• CDA

• DTI

• SEC

• COA

The branch of accounting which is primarily concerned about evaluation and examination of financial reports.

• Management Accounting

• Auditing

• Accounting Research

• Financial Accounting