Topic 4: part 1

Question 1

______________are accounting reports that a
firm issues periodically to describe its _________ performance.

Answer 1

Financial statements; past

Question 2

The four required financial statements are ______________, _____________, _____________, and the ________________.

Answer 2

balance sheet; income statement; statement of cash flows; statement of stockholders’ equity

Question 3

provides a common set
of rules and a standard format for public companies to use
when they prepare their reports

Answer 3

Generally Accepted
Accounting Principles (GAAP)

Question 4

list the firm’s cash, inventory, property, plant and
equipment, and any other investments the company has
made.

Answer 4

Assets

Question 5

show the firm’s obligations to its creditors.

Answer 5

Liabilities

Question 6

is the book value of the firm’s
equity

Answer 6

Stockholders’ equity

Question 7

Assets = Liabilities + Stockholders’ Equity

Answer 7

Liabilities + Stockholders’ Equity