Finance Review - Accounting.docx - 1 Liabilities are items...

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1.Liabilities are items owed to a creditor. Assets are items owned by acompany. Stockholders Equityrepresents owners' claims to company resources.2.Under Accrual Basisaccounting, revenues are recorded when earned and expenses are recorded with related revenues. Under Cash Basisaccounting, revenues are recorded when cash is received, and expenses are recorded when cash is paid out. Financial statements are prepared using Accrual Basisaccounting.3.The SECretains the power and authority to set accounting standards.Currently, this responsibility has been delegated to the FASB.4.In what order are the four primary financial statements prepared?
5.The difference between net income and dividends paid is known as what?
Your answer is correct.During 2017, Flounder Corp. entered into the following transactions.

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