KP 1,2,4 BT: C Difficulty: Easy TOT: 2 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 2. For each description listed in items 1 through 4 below, select the letter of the accounting term (A through F) it best describes. You may use each letter more than once. Accounting Terms A. Asset B. Liability C. Retained earnings D. Revenue E. Expenses F. Equity investment _______ 1. Total measured past growth less the amount distributed to owners _______ 2. A measure of assets generated from the products and services sold _______ 3. Owed and must be paid in the future _______ 4. Amount invested in the firm by its owners Solution: 1. C 2. D 3. B 4. F KP 2 BT: K Difficulty: Easy TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 3. For each financial statement listed in 1 through 4 below, place the letter (A through D) of the best description in the space provided. You may use each letter more than once or not at all. Descriptions A. Assets, liabilities, and equity shareholders’ B. Increased by net income and decreased by dividends C. Operating, investing, and financing activities D. Revenues less expenses _______ 1. Balance sheet _______ 2. Income statement _______ 3. The retained earnings section of the statement of equity shareholders’ _______ 4. Statement of cash flows Solution: 1. A 2. D
KP 1,2,4 BT: C Difficulty: Easy TOT: 2 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 2. For each description listed in items 1 through 4 below, select the letter of the accounting term (A through F) it best describes. You may use each letter more than once. Accounting Terms A. Asset B. Liability C. Retained earnings D. Revenue E. Expenses F. Equity investment _______ 1. Total measured past growth less the amount distributed to owners _______ 2. A measure of assets generated from the products and services sold _______ 3. Owed and must be paid in the future _______ 4. Amount invested in the firm by its owners Solution: 1. C 2. D 3. B 4. F KP 2 BT: K Difficulty: Easy TOT: 1 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting 3. For each financial statement listed in 1 through 4 below, place the letter (A through D) of the best description in the space provided. You may use each letter more than once or not at all. Descriptions A. Assets, liabilities, and shareholders’ equity B. Increased by net income and decreased by dividends C. Operating, investing, and financing activities D. Revenues less expenses _______ 1. Balance sheet _______ 2. Income statement _______ 3. The retained earnings section of the statement of shareholders’ equity _______ 4. Statement of cash flows Solution: 1. A 2. D
Pratt--Financial%20Accounting%20in%20an%20Economic%20Context%208e.docx