Chapter 1: statement of comprehensive income

Question 1

what does the statement of comprehensive income report

Answer 1

the change in shareholders’ equity during an accounting period

it comes from business activities other than investments by shareholders or money given to them

Question 2

what is the time period covers by a financial stamens called

Answer 2

accounting period

Question 3

does a company recognize sales made on credit to customers as revenues

Answer 3

yes

credit sales and cash sales are all revenues

Question 4

what are the three elements of statement of earnings

Answer 4

revenues

expense

net earnings

Question 5

what is the most significant expense for companies

Answer 5

cost of sales

Costs to produce and have your product

Question 6

do services usually have costs of sale

Answer 6

nah boy

Question 7

what are the type of expenses

Answer 7

Cost of Sales

Wages Expense

Rent Expense

Interest Expense

Depreciation Expense

Advertising Expense

Insurance Expense

Repair Expense

Income Tax Expense

Question 8

if you promised to pay $1,000,000 and used services this accounting period, but you can pay much later, would the expense be included this accounting period?

Answer 8

ye boy

Question 9

do the net earnings equal the cash generated by operations?

Answer 9

nah boy