Fundamentals of Financial Accounting
5th Edition
ISBN: 9780078025914
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 1, Problem 1.3ME
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…
Assess whether each of following would be recorgnized in the balance sheet of an entity? Explain?
a. The location of the business
b. The quality of management
c. The equipment purchased on credit
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
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 - Prob. 9QCh. 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. 1.1MECh. 1 - Prob. 1.2MECh. 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. 1.11MECh. 1 - Prob. 1.12MECh. 1 - Prob. 1.13MECh. 1 - Prob. 1.14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 1.16MECh. 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 - Prob. 1.5ECh. 1 - Prob. 1.6ECh. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 1.8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 1.11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Prob. 1.2CPCh. 1 - Prob. 1.3CPCh. 1 - Prob. 1.4CPCh. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 1.2PACh. 1 - Prob. 1.3PACh. 1 - Prob. 1.4PACh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Prob. 1.3PBCh. 1 - Prob. 1.4PBCh. 1 - Prob. 1.1SDCCh. 1 - Prob. 1.2SDCCh. 1 - Prob. 1.5SDCCh. 1 - Prob. 1.6SDCCh. 1 - Financial Statements for a Business Plan Nicole...
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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
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