The Accountant for the Lintz Sales Company Is Preparing the Income

question 15

Multiple Choice

The accountant for the Lintz Sales Company is preparing the income statement for 2015 and the statement of financial position at December 31, 2015.The January 1, 2015, merchandise inventory balance will appear

• A)only as an asset on the statement of financial position.
• B)only in the cost of goods sold section of the income statement.
• C)as a deduction in the cost of goods sold section of the income statement and as a current asset on the statement of financial position.
• D)as an addition in the cost of goods sold section of the income statement and as a current asset on the statement of financial position.

Differentiate between entrepreneurs and small business managers/owners.

Recognize the risks associated with entrepreneurship and strategies for managing them.

Understand the concept and significance of the harvest stage in a business’s lifecycle.

Analyze the importance of personality characteristics and commitment in successful entrepreneurship.

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Definitions:

Financial Statement Components

The main parts of financial statements, including the balance sheet, income statement, statement of cash flows, and statement of changes in equity.

FASB

The Financial Accounting Standards Board, a private, non-profit organization that establishes financial accounting and reporting standards in the U.S.

Comprehensive Income

Comprehensive Income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

IFRS

International Financial Reporting Standards, which is a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.