A balance sheet is used to report the activities involving assets, liabilities, and stockholders' equity over a specific time period.

Net Income is the amount a business earns after subtracting all expenses and costs from sales.

Cost of goods sold is reported on the balance sheet.

Only revenue and expense accounts are used to prepare an income statement.

The term revenues means the same as the term net income.

The balance sheet is based on the accounting equation.

What Account links the Income Statement to the Balance Sheet ?

The income statement for a manufacturer does not contain the line item 'Cost of Goods Sold'.

A multiple-step income statement reports multiple levels of profitability, such as gross profit, operating income, income before income taxes, and net income.

Gross profit is also called gross margin.

Income and Expense Accounts are always associated with a Period Of Time.

The financial statement that reports assets and liabilities is the income statement.

Net sales minus cost of goods sold is referred to as operating income.

The income statement is used to report the results of operations at a specific date.

Which of the following would appear in a business's Balance Sheet ?

Interim financial statements refer to financial reports that cover less than one year, usually spanning one, three or six-month periods.

On a classified balance sheet, current assets are customarily listed in the order in which they are expected to be converted into cash.

Sales less sales discounts and sales returns and allowances equals gross profit.

The Cost Of inventory is deducted in the Income Statement when ?

Current liabilities include accounts receivable, unearned revenues, and salaries payable.

An unclassified balance sheet provides more information to users than a classified balance sheet.

The statement of cash flows reports on cash flows separated into operating, investing, and financing activities over a period of time.

Assets are often classified into current assets, investments, plant assets, and intangible assets.

Net Income equals assets minus liabilities.

A Balance Sheet is a formal financial statement that summarizes revenues and expenses for a period.

A service company that does not sell any products Income Statement does NOT contain which of the following ?

The income statement reports on operating activities at a point in time.

The four basic financial statements include the balance sheet, income statement, statement of retained earnings, and statement of cash flows.

Sales Discounts is shown as a reduction of cost of goods sold in the income statement.

Which of the following Financial Statements discloses the total amount of Fixed Assets ?

A balance sheet is also referred to as a Statement Of Financial Position.

A Balance Sheet is a formal representation of the Accounting Equation.

Prepaid expenses appear as an item in the income statement.

Cost of goods sold is also called cost of sales.

The balance sheet is prepared before the income statement.