Financial Statements-1

What does the Income Statement represent ?
1. cash for a period of time
2. revenue and expenses for a period of time
3. assets and liabilities at a point in time
4. owner's equity at a point in time
The result after all revenue and expenses are accounted for is known as ?
1. net profit or loss
2. total income
3. total revenue
4. total profit
The income statement is also known as ?
1. a profit and loss statement
2. statement of financial performance
3. revenue statement
4. all of these answers are correct
Which of the following is the correct representation of the accounting equation ?
1. Liabilities=Assets+Owner's Equity
2. Assets=Liabilities+Initial Owner's Equity
3. Assets=Liabilities+Owner's Equity
4. Owner's Equity=Assets+Liabilities
All of these accounts appear on the Balance Sheet except ?
1. assets
2. stockholder's equity
3. revenue
4. liabilities
What is another name for the Balance Sheet ?
1. statement of financial position
2. statement of cash position
3. statement of assets and equity
4. statement of revenues and expenses
Which of these is NOT a part of the balance sheet equation ?
1. assets
2. cash flow
3. equity
4. liabilities
Items that a business can use or exchange to produce future revenues are known as -select the best answer ?
1. assets
2. materials
3. inventory
4. property,plant, and equipment
Debts owed by a business to others are classified as ?
1. receivables
2. equity
3. liabilities
4. credits
Where do the assets appear on a two column balance sheet ?
1. after liabilities
2. on the left
3. before liabilities
4. on the right
What account is normally the largest current asset ?
1. accounts payable
2. inventory
3. equity
4. cash
Which of these assets is a fixed asset ?
1. machinery and equipment
2. vehicles
3. land
4. all of these answers are correct
Which of the following is NOT a current asset ?
1. Cash
2. Inventory
3. Accounts Receivable
4. Copyrights
The income statement represents information at a single (specific) point in time.
1. True
2. False
Which of the following is NOT used to calculate an asset's book value ?
1. current market price of the asset
2. cost of the asset when acquired
3. total accumulated depreciation of the asset
4. none of the answers is correct
Which of the following is NOT reported on the Balance Sheet ?
1. sales revenue
2. capital
3. equipment
4. cash
5. accounts receivable
The statement of cash flows "ties" in to the cash balances in the balance sheet.
1. True
2. False
Which of these is an example of a non-cash entry ?
1. bad debt write off
2. depreciation
3. amortization
4. all of the answers are correct
Cash flow is cash receipts less cash disbursement for a period of time.
1. True
2. False
What two items are subtracted from gross sales to arrive at net sales ?
1. outstanding sales and sales discounts
2. sales returns/allowances and sales discounts
3. sales returns/allowances and sales tax
4. sales returns/allowances and cost of goods sold
The sum of all sales for a period is known as ?
1. net sales
2. gross sales
3. revenue
4. earnings
To determine gross margin what is subtracted from net sales ?
1. cost of goods sold
2. inventory
3. operating expenses
4. sales returns/allowances
The financial position of a business on a given date is reported on ?
1. Income Statement
2. Balance Sheet
3. Statement of Changes in Owner's Equity
4. Statement of Cash Flows
Which of the following accounts is NOT a liability ?
1. Accounts Payable
2. Accounts Receivable
3. Salaries Payable
4. Unearned Revenues
5. Notes Payable
The resulting amount when total liabilities are subtracted from total assets is called ?
1. owner's equity or net assets
2. net income or net loss
3. total expenses
4. total revenues

Financial Statements-1

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