Intro To Financial Accounting |84 Questions| With Correct Answers.

retained earnings statement {Ans: the statement that shows the amounts and causes of changes in retained earnings during the period}long-term investments {Ans: generally, investments in stocks ans bonds of other companies that companies normally hold for many years. Also includes long-term assets, such as land and buildings, not currently being used in the company's operations}stockholder's equity {Ans: the stockholder's claim on total assets}Sarbanes Oxley Act (SOX) {Ans: The act passed in 2002 by Congress to try to reduce unethical corporate behavior and consequently decrease the likelihood of future corporate scandals.}Time period assumption {Ans: an assumption that the life of a business can be divided into artificial time periods and that useful reports covering those periods can be prepared for the business}general journal {Ans: the most basic form of journal}Solvency {Ans: The ability of a company to pay interest as it comes due and to repay the face value of debt at maturity}account {Ans: an individual accounting record of increases and decreases in specific asset, liability or stockholders equity items}double-entry system {Ans: a system that records the dual effect of each transaction in appropriate accounts}Debt to total assets ratio {Ans: measures