A firm’s annual stockholders’ report ________. A) is only accessible to the shareholders of the firm B) summarizes and documents the firm’s financial activities during the past year C) documents the list of all investors who bought the firm’s shares during the past year D) summarizes and documents the firm’s financial plan and budgets during […]
The rule-setting body, which authorizes generally accepted accounting principles is the ________. A) IFRS B) FASB C) SEC D) Federal Reserve System ANSWER B
Accounting practices and procedures used to prepare financial statements are called ________. A) SEC B) IFRS C) GAAP D) IRB ANSWER C
The federal regulatory body governing the sale and listing of securities is called the ________. A) IRS B) FASB C) GAAP D) SEC ANSWER D
Earnings per share represents amount earned during the period on each outstanding share of common stock. Indicate whether the statement is true or false ANSWER TRUE
Net fixed assets represent the difference between gross fixed assets and accumulated depreciation of fixed assets. Indicate whether the statement is true or false ANSWER TRUE
The Financial Accounting Standards Board (FASB) is the federal regulatory body that governs the sale and listing of securities. Indicate whether the statement is true or false ANSWER FALSE
Earnings per share results from dividing earnings available for common stockholders by the number of shares of common stock authorized. Indicate whether the statement is true or false ANSWER FALSE
GAAP is the accounting profession’s rule-setting body. Indicate whether the statement is true or false ANSWER FALSE
Retained earnings represent the cumulative total of all earnings, net of dividends, that have been retained and reinvested in the firm since its inception. Indicate whether the statement is true or false ANSWER TRUE
