Financial Statements-2

On a balance sheet, the most liquid assets are listed first.
1. True
2. False
The shareholder's equity amount on a balance sheet represents creditors claims.
1. True
2. False
Which of the following would NOT appear on the income statement ?
1. dividends
2. revenues
3. expenses
4. net income/loss
Which of the following would appear on the statement of Retained Earnings.
1. Beginning Retained Earnings
2. Dividends
3. Net Income/Loss
4. Ending retained earnings
5. All of the answers are correct
Cost Of Goods Sold would be classified as what type of Account ?
1. expense
2. asset
3. liability
4. revenue
The notes to the financial statements are not required by Generally Accepted Accounting Princples (GAAP).
1. True
2. False
The primary purpose of the Income Statement is ?
1. Measure the company's profitability over a period of time
2. Show the company's value as of a given point in time
3. Determine if the company will have enough cash to operate properly
4. Determine taxes owed
5. Compare the company's assets against the company's liabilities
Which financial statement shows the movements of cash and cash equivalents in and out during an accounting period ?
1. Income statement
2. Balance Sheet
3. Cash flow statement
4. Statement of changes in equity
Goodwill is classified as which of the following type of asset ?
1. Fixed
2. Intangible
3. Current
4. Long Term
Assets minus Liabilities equals Net Income/Loss.
1. True
2. False
Prepaid expenses are classified as non-current assets.
1. True
2. False
Owner's Equity is also referred to as Net Assets.
1. True
2. False
The balance sheet is a measure of the market value of a company.
1. True
2. False
Assets are classified as current if they can be turned into cash or used up in a year or operating cycle, whichever is longer.
1. True
2. False
Revenues are found in the balance sheet.
1. True
2. False
Capital Stock is a current asset.
1. True
2. False
Recording revenues when cash is received is one of the Generall Accepted Accounting Principles (GAAP).
1. True
2. False
The income statement summarizes the assets, liabilities, and owner's equity of a business at a moment in time.
1. True
2. False
The current ratio is a measure of a company's liquidity.
1. True
2. False
A Trial Balance is a tool that is used as an aid in preparing the financial statements.
1. True
2. False
Notes to the financial statements are an integral part of the statements and are required by Generally Accepted Accounting Principles (GAAP).
1. True
2. False
In the Report Form of the Balance Sheet the major categories are stacked on top of each other.
1. True
2. False
Two forms of the Income Statement are the Single-Step and the Multi-Step.
1. True
2. False

Financial Statements-2

Quiz