Review & Goodbye!
About the Lecture
The lecture Review & Goodbye! by Clint Locke is from the course Archiv - Financial Accounting: Understanding the Big Picture. It contains the following chapters:
- Conclusion
Included Quiz Questions
Which choice correctly states the type of information we glean from the income statement?
- The amount of expenses incurred by advertising.
- The nature of the capital investments made by the shareholders.
- The amount of cash used to purchase equipment.
- The number of shares outstanding.
What does the balance sheet tell us?
- The balances of certain accounts at a moment in time.
- How much income the business made in a particular 12 month period.
- The amount of cash used to pay short term liabilities.
- The cash generated by investing activities.
Which statement correctly characterizes the relationship of the statement of cash flows (indirect method) with the other two financial statements?
- The statement of cash flows uses financial information from the income statement and balance sheet to reflect how a business used or provided cash.
- The statement of cash flows is an independent financial statement, which bears no relationship to the other financial statements.
- The statement of cash flows uses only the balance sheet accounts to determine how much cash was provided or used by the business.
- The statement of cash flows utilizes journal entries that are not on the other two financial statements to provide us with information about cash flow.
What does the retained earnings account on the balance sheet mean?
- It informs the reader how much income has been retained by the business since inception.
- It reflects the amount of income generated by the business in a 12 month period.
- It tells the user how much cash is available for use for dividends or investments.
- It reflects the amount of income generated by the business since inception.
How do the financial statements fit together to form the “Big Picture?”
- They all provide different information, but the information is connected in such a way that the user can tell how a business is operating.
- They all provide the same information in a different way.
- They all provide the same information and the information is connected in such a way that the user can tell how a business is operating.
- They all provide different information and the information is only connected between some of the financial statements.
Which statement properly reflects the relationship between all three financial statements?
- Income from the income statement is closed out at year end to the retained earnings account on the balance sheet and is used as a starting point on the statement of cash flows.
- The cash balance on the balance sheet ties out to the net income balance on the income statement and ties out to the year end cash balance on the statement of cash flows.
- The statement of cash flows starts out using the cash balance on the balance sheet and then uses many income statement accounts to adjust the cash balance.
- Net income from the income statement is closed out at year end to the retained earnings account on the balance sheet and ties out to the year end cash balance on the statement of cash flows.
Author of lecture Review & Goodbye!
Clint Locke
Customer reviews
5,0 of 5 stars
| 5 Stars |
|
5 |
| 4 Stars |
|
0 |
| 3 Stars |
|
0 |
| 2 Stars |
|
0 |
| 1 Star |
|
0 |
