AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-01 Define the objective of financial reporting; the elements of the balance sheet; and the related key accounting assumptions and principles. Topic Area: Overview of Accounting Concepts 10. Stockholders' equity reflects the financing provided by owners. TRUE The stockholders' equity section of the balance sheet includes financing provided by owners and net income retained from business operations. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Define the objective of financial reporting; the elements of the balance sheet; and the related key accounting assumptions and principles. Topic Area: Overview of Accounting Concepts 11. Common stock and additional-paid in capital represent the financing sources from shareholders. TRUE Common stock and additional paid-in capital are contributed capital components representing the financing sources from owners. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Define the objective of financial reporting; the elements of the balance sheet; and the related key accounting assumptions and principles. Topic Area: Overview of Accounting Concepts 12. Financial reporting focuses on reporting the impact of transactions on an entity's financial position. TRUE Accounting focuses on certain events that have an economic impact on the entity. Those events that are recorded as part of the accounting process are called transactions.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 2 Medium Learning Objective: 02-01 Define the objective of financial reporting; the elements of the balance sheet; and the related key accounting assumptions and principles. Topic Area: Overview of Accounting Concepts 10. Stockholders' equity reflects the financing provided by owners. TRUE The stockholders' equity section of the balance sheet includes financing provided by owners and net income retained from business operations. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Define the objective of financial reporting; the elements of the balance sheet; and the related key accounting assumptions and principles. Topic Area: Overview of Accounting Concepts 11. Common stock and additional-paid in capital represent the financing sources from shareholders. TRUE Common stock and additional paid-in capital are contributed capital components representing the financing sources from owners. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-01 Define the objective of financial reporting; the elements of the balance sheet; and the related key accounting assumptions and principles. Topic Area: Overview of Accounting Concepts 12. Financial reporting focuses on reporting the impact of transactions on an entity's financial position. TRUE Accounting focuses on certain events that have an economic impact on the entity. Those events that are recorded as part of the accounting process are called transactions.
Test%20Bank%20for%20Financial%20Accounting%208th%20Edition%20Libby,%20Libby,%20Short.docx