Ending stockholders’ equity ($205,000 - $169,000) $ 36,000
*Beg. stock. equity + Add. inv. + Rev. – Exp.
COMPLETION STATEMENTS
217. A business organized as a separate legal entity owned by stockholders is a ___________.
Ans: N/A, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
218. _______________ of accounting information are managers who plan, organize, and run a business.
Ans: N/A, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
219. _________________ activities involve collecting the necessary funds to start the business.
Ans: N/A, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
220. The ________________ reports the assets, liabilities, and stockholders’ equity of a business at a specific date.
Ans: N/A, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
221. The claims of owners on the assets of a corporation are known as ________________.
Ans: N/A, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
222. The basic accounting equation is Assets = ____________ + _______________.
Ans: N/A, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Business Economics
223. The primary purpose of a ________________ is to provide financial information about the cash receipts and cash payments of a business.
Ans: N/A, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
224. The _________________ is prepared by an independent auditor stating the auditor’s opinion as to the fairness of the presentation of the financial statements.
Ans: N/A, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
Answers to Completion Statements
217. corporation 221. stockholders’ equity
218. Internal users 222. Liabilities, Stockholders’ equity
219. Financing 223. statement of cash flows
220. balance sheet 224. auditor's report
MATCHING
225. Match the items below by entering the appropriate code letter in the space provided.
A. Internal users F. Corporation