Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 1, Problem 3ME
Matching Definitions with Terms
Match each definition with its related term by entering the appropriate letter in the space provided.
Term | Definition |
____ 1. Relevance | A. The financial reports of a business are assumed to include the results of only that business’s activities. |
____ 2. Faithful Representation | |
____ 3. Expenses | B. The resources owned by a business. |
____ 4. Separate Entity | C. Financial information that depicts the economic substance of business activities. |
____ 5. Assets | |
____ 6. Liabilities | D. The total amounts invested and reinvested in the business by its owners. |
____ 7. Stockholders’ Equity | E. The costs of business necessary to earn revenues. |
____ 8. Revenues | F. A feature of financial information that allows it to influence a decision. |
G. Earned by selling goods or services to customers. | |
H. The amounts owed by the business. |
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Directions: Choose the letter of the best answer and write your answer on a
separate sheet of paper.
1. It pertains to resources which are controlled and owned by the business.
a. Assets
b. Liabilities
c. Equity
d. Resources
2. It is derived from deducting the total liabilities to the total assets of a company,
a. Assets
. b. Liabilities
c. Equity
d. Resources
3. Which of the following pertains to the obligations that the business owed to other
entities arising from past events which are to be settled in the future?
a. Assets
b. Liabilities
c. Equity
d. Resources
4. Which of the following is the correct Accounting Equation?
a. Assets + Liabilities Equity
b. Assets = Liabilities Equity
c. Assets Liabilities + Equity
d. Assets + Equity = Liabilities
5. Which of the following is classified as Current Asset?
a. Prepaid Expenses
b. Land
c. Delivery Vehicle
d. Copyright
6. Which of the following financial statements presents the financial position of au
entity at a given or…
A concept of accounting that indicates that the financial records of the business should be kept separate from the personal financial records of the business owner is the ________________________.
Group of answer choices
business entity concept
cost concept
proprietorship concept
asset concept
Which one of the following accounting concepts/conventions enables the business to make comparative analysis of the financial results of two entities? a.cost , b.going concern , c.business entity , d.consistency
Chapter 1 Solutions
Fundamentals Of Financial Accounting
Ch. 1 - Define accounting.Ch. 1 - Prob. 2QCh. 1 - Briefly distinguish financial accounting from...Ch. 1 - The accounting process generates financial reports...Ch. 1 - Explain what the separate entity assumption means...Ch. 1 - List the three main types of business activities...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the balance sheet,...Ch. 1 - Explain why the income statement, statement of...Ch. 1 - Briefly explain the difference between net income...
Ch. 1 - Describe the basic accounting equation that...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Briefly define what an ethical dilemma is and...Ch. 1 - Prob. 18QCh. 1 - Prob. 1MCCh. 1 - Which of the following is true regarding the...Ch. 1 - Which of the following is false regarding the...Ch. 1 - Which of the following regarding retained earnings...Ch. 1 - Prob. 5MCCh. 1 - Which of the following statements regarding the...Ch. 1 - Prob. 7MCCh. 1 - Which of the following is true? a. FASB creates...Ch. 1 - Which of the following would not be a goal of...Ch. 1 - Prob. 10MCCh. 1 - Prob. 1MECh. 1 - Matching Definitions with Terms or Abbreviations...Ch. 1 - Matching Definitions with Terms Match each...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to the Basic...Ch. 1 - Matching Financial Statement Items to the Four...Ch. 1 - Reporting Amounts on the Statement of Cash Flows...Ch. 1 - Prob. 11MECh. 1 - Preparing a Statement of Retained Earnings Stone...Ch. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Preparing a Balance Sheet DSW, Inc., is a designer...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Labeling and Classifying Business Transactions The...Ch. 1 - Preparing an Income Statement and Inferring...Ch. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Interpreting the Financial Statements Refer to...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to CP1-3....Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 2PACh. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PA1-3....Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Interpreting the Financial Statements Refer to PB...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PB1-3....Ch. 1 - Finding Financial Information Answer the following...Ch. 1 - Comparing Financial Information Refer to the...Ch. 1 - Prob. 5SDCCh. 1 - Prob. 6SDCCh. 1 - Prob. 1CC
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- List the three basic questions that must be answered when analyzing the effects of a business transaction on the accounting equation.arrow_forwardWhich of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principlearrow_forwardWhat is the accounting equation? List two examples of business transactions, and explain how the accounting equation would be impacted by these transactions.arrow_forward
- Each of the following situations relates to a different company. A. For each of these independent situations, find the missing amounts. B. How would stakeholders view the financial performance of each company? Explain.arrow_forwardThe metrics based on financial numbers produced by the accounting system are ________. A. quantitative factors B. qualitative factors C. stakeholders D. stockholdersarrow_forwardACCOUNTING PROCESS Match the following steps of the accounting process with their definitions. Analyzinga. Telling the results Recordingb. Looking at events that have taken place and thinking about how they affect the business Classifying Summarizingc. Deciding the importance of the various reports Reportingd. Aggregating many similar events to provide information that is easy to understand Interpretinge. Sorting and grouping like items together f. Entering financial information into the accounting systemarrow_forward
- An economic event or condition that directly changes the financial condition of the company or directly affects its results of operations and should be recorded is called a/an ____________________. Group of answer choices accounting concept business transaction communication economic transactionarrow_forwardUsing the following categories, discuss the differences that exist between accounting for these items in a personal context versus for a business. Specifically provide examples of the difference in account names or terms used to describe the equivalent item when related to accounting for a business. 1. Assets & LIabilities 2. Net Worth 3. Surplus(deficit)arrow_forwardWhich of the following accounting concepts considers the investment made by the owner in the business as the liability of the business? a.Dual aspect concept , b.Money measurement concept , c.Business entity concept , d.Going concern conceptarrow_forward
- Which of the following systems provides the internal financial information needed to manage a business? a. MRS b. IRS c. GL/FRS d. TPSarrow_forward_______________________________ is generally referred as a parameter to check/test the efficiency of the business concern. Select one: A. Assets B. Liabilities C. Profit D. Capitalarrow_forwardFinancial accounting serves which primary function(s)? a. Measures business activities. b. Communicates business activities to interested parties. c. Makes business decisions on behalf of interested parties. d. Both a. and b. are functions of financial accounting.arrow_forward
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