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1. ________ are items owed to a creditor. ________ are itemsowned by a company. ________ represents owners' claims to companyresources.Expenses; Revenues; Net incomeExpenses; Revenues; Stockholders??? equityLiabilities; Assets; Stockholders' equityLiabilities; Assets; Net income2. Under ________ accounting, revenues are recorded when earnedand expenses are recorded with related revenues. Under ________accounting, revenues are recorded when cash is received andexpenses are recorded when cash is paid out. Financial statementsare prepared using ________ accounting.cash-basis; accrual-basis; accrual-basiscash-basis; accrual-basis; cash-basisaccrual-basis; cash-basis; cash-basisaccrual-basis; cash-basis; accrual-basis3. The ________ retains the power and authority to setaccounting standards. Currently, this responsibility has beendelegated to the________.Securities and Exchange Commission; International AccountingStandards BoardInternational Accounting Standards Board; Financial AccountingStandards BoardSecurities and Exchange Commission; Financial AccountingStandards BoardFinancial Accounting Standards Board; Securities and ExchangeCommission4. In what order are the four primary financial statementsprepared?Statement of stockholders' equity > Income statement >Balance sheet > Statement of cash flowsBalance sheet> Income statement > Statement of cashflows> Statement of stockholders' equityIncome statement > Statement of stockholders' equity >Balance sheet > Statement of cash flowsIncome statement > Balance sheet > Statement ofstockholders' equity > Statement of cash flows5. The difference between net income and dividends paid is knownas what?Addition to retained earningsEnding balance in retained earningsGross profitTotal stockholders??? equity