Which of the following is true about an income statement?
a.It reports revenues and expenses.
b.It reports dividends declared.
c.It reports activity for a period of time.
d.Only a. and c. are true.
e.All of the above are true. correct answers d.Only a. and c. are true.
How many of the following accounts would be reported on a firm's balance
sheet?
·Accounts Receivable
·Cash
·Equipment
·Deferred Revenue
·Depreciation Expense
·Dividends
·Notes Payable
·Retained Earnings
·Service Revenue
·Supplies
·Wages Expense correct answers 7
Providing services to customers on account would affect the balances reported
in which financial statement(s)?
a.Income statement.
b.Statement of stockholders' equity.
c.Balance sheet.
d.All of the financial statements in the other answers would be affected correct
answers d.All of the financial statements in the other answers would be affected.
Which of the following describes the purpose(s) of closing entries?
a.Adjust the balances of asset and liability accounts for unrecorded activity
during the period.
b.Adjust the balances of revenue and expense accounts for unrecorded activity
during the period.
c.Transfer the balances of temporary accounts to Retained Earnings; reduce the
balances of the temporary accounts to zero to prepare them for measuring
activity in the next period.
d.Transfer the balances of temporary accounts to Common Stock; reduce the
balances of the temporary accounts to zero to prepare them for measuring
activity in the next period. correct answers c.Transfer the balances of temporary