Exam 3 Review - Ch. 14-16

Who uses accounting?

• Schools

• Hospitals

• Accountants

• businesses, hospitals, schools, government agencies, and civic groups—use accounting procedures

The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• None of These

The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the:

• Balance Sheet
• Income Statement
• Statement of Cash Flows
• Cash Statement

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Owner Equity
• Equity

Obligations (amounts owed) are reported on the balance sheet and are referred to as __________.

• Assets
• Liabilities
• Debt
• Owner Equity

Revenues minus expenses equals:

• Assets
• Liabilities
• Owner Equity
• Net Income

The Accounting Equation must always be in balance? 

• True
• False

Assets 

• Anything owed by the company
• Anything owned of value by the company

Supplies purchased on account that will be paid for at a later date is a liability.

• True
• False

The owner's worth after assets are used to pay all liabilities is the definition of

• Owner's Equity
• Liabilities
• Assets