1
What information is contained in a balance sheet?
Correct
Report of a company’s financial position as of a point in time.
Report of a company’s operating performance during a period of time.
Report of a company’s operating performance as of a point in time.
Report of a company’s financial position during a period of time.
2
What is an owners’ equity item?
Loans payable
Accounts receivable
Cash
Correct
Capital stock
3
A company ended July with assets of $150,000 and owner’s equity of $60,000.
What is the amount of liabilities at the end of July?
$60,000
Correct
$90,000
$150,000
$300,000
4
What is reported in a multiple-step income statement that is not reported in a single-step income
statement?
Correct
Gross profit
, Dividends
Cash collected from customers
Retained earnings
5
How is gross profit computed?
Cash minus dividends.
Sales minus operating expenses.
You Selected
Total revenues minus total expenses.
Correct
Sales minus cost of goods sold.
6
The following are some accounts from a company’s financial statements:
accounts receivable
cost of goods sold
cash
retained earnings
sales
inventory
income tax expense
accounts payable
Which set is a list of all of the items that are used in computing this company’s net income?
Correct
Sales, cost of goods sold, and income tax expense.
Inventory, accounts payable, and retained earnings.
Cash, accounts receivable, and accounts payable.
Cash, retained earnings, and accounts payable.
, 7
What cash flow category contains activities whereby cash is obtained from or repaid to owners
or creditors?
Investing
Correct
Financing
Equity
Revenue
8
Here are some financial statement items for the year for a company.
Cash received from customers
Cash received from the sale of land
Cash paid for dividends
Cash paid to employees for wages
Cash paid to purchase a new building
Cash paid for rent
Cash received as new investment from owners
Which set of items is a list of items that are used in computing the company's financing cash
flow for the year?
Cash received from customers and cash paid for rent.
Cash paid to purchase a new building and cash received from the sale of land.
Correct
Cash paid for dividends and cash received as new investment from owners.
Cash received from customers, and cash paid to employees for wages.
9
Here are some financial statement items for a company.
Net income
Cash flow from financing activities
What information is contained in a balance sheet?
Correct
Report of a company’s financial position as of a point in time.
Report of a company’s operating performance during a period of time.
Report of a company’s operating performance as of a point in time.
Report of a company’s financial position during a period of time.
2
What is an owners’ equity item?
Loans payable
Accounts receivable
Cash
Correct
Capital stock
3
A company ended July with assets of $150,000 and owner’s equity of $60,000.
What is the amount of liabilities at the end of July?
$60,000
Correct
$90,000
$150,000
$300,000
4
What is reported in a multiple-step income statement that is not reported in a single-step income
statement?
Correct
Gross profit
, Dividends
Cash collected from customers
Retained earnings
5
How is gross profit computed?
Cash minus dividends.
Sales minus operating expenses.
You Selected
Total revenues minus total expenses.
Correct
Sales minus cost of goods sold.
6
The following are some accounts from a company’s financial statements:
accounts receivable
cost of goods sold
cash
retained earnings
sales
inventory
income tax expense
accounts payable
Which set is a list of all of the items that are used in computing this company’s net income?
Correct
Sales, cost of goods sold, and income tax expense.
Inventory, accounts payable, and retained earnings.
Cash, accounts receivable, and accounts payable.
Cash, retained earnings, and accounts payable.
, 7
What cash flow category contains activities whereby cash is obtained from or repaid to owners
or creditors?
Investing
Correct
Financing
Equity
Revenue
8
Here are some financial statement items for the year for a company.
Cash received from customers
Cash received from the sale of land
Cash paid for dividends
Cash paid to employees for wages
Cash paid to purchase a new building
Cash paid for rent
Cash received as new investment from owners
Which set of items is a list of items that are used in computing the company's financing cash
flow for the year?
Cash received from customers and cash paid for rent.
Cash paid to purchase a new building and cash received from the sale of land.
Correct
Cash paid for dividends and cash received as new investment from owners.
Cash received from customers, and cash paid to employees for wages.
9
Here are some financial statement items for a company.
Net income
Cash flow from financing activities
