Module 1 Quiz of Understanding Financial Statements Company Position

What is assigning numerals or other symbols to represent the magnitude of an attribute or phenomenon called?

Since we cannot directly observe a baby’s happiness, what would we call a substitute way of measuring the happiness by looking at “smiles per hour”?

The attribute of a phenomenon cannot change. True or false?

A phenomenon can have many attributes. True or false?

What are the three measurement questions that are substitute attributes for financial statements themselves?

I. What do you own?

II. What do you know?

III. What do you owe?

IV. How did you perform?

To measure how friendly a student is, one would likely use a substitute attribute. True or false?

What is the characteristic of the phenomenon called?

Assets, liabilities, and equity are the three components of what financial statement?

What are economic resources owned by the company called?

What are the obligations that the company has to others?

What is thought of as the net worth of the company because it represents the difference between assets and liabilities?

Which financial statement represents a picture of the company on a certain date?

Which financial statement represents transactions that occurred over a designated period of time?

Publicly traded companies are required to produce financial statements. True or false?

Which account on the income statement represents resources earned from normal operating activities?

Which account on the income statement represents an outlay of resources as part of normal operating activities?

Companies not required to produce financial statements have no incentive to generate them. True or false?

The company’s assets can help answer which measurement question?

The company’s liabilities can help answer which measurement question?