1. The broad categories of information reported on a business\'s financial state
ID: 2555677 • Letter: 1
Question
1. The broad categories of information reported on a business's financial statements are referred to as
A.. accounts.B. elements of the financial statements. C. components. D. assets.
2. Retained Earnings is
A. a part of a company's assets. B. a category or type of liability. C. a part of stockholders'equity. D. a result of asset use transactions.
3. As of December 31, 2009, Bueno Company had $1,000 in liabilities, $8,000 in common stock, and $2,500 inretained earnings. The total amount of assets on that date is
A. $10,000. B. $12,500. C. $11,500. D. $7,500.
Explanation / Answer
1). The answer of firs question is option C. Components of financial statements . Broad categories of information include income statement, balance sheet , cash flow statement, statement of changes in equity. These information are reported on business financial statements.so option C is correct answer.
2). Retained earnings is part of shareholders equity. It is shown under shareholders equity heading. Option C is correct answer.
3).Total assets = total liabilities
So company has also asset against 1000 liabilities and 2500 retained earnings .
So total assee will be 8000+2500+1000= 11500$
Option C. 11500 is correct answer.
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