ACCOUNTING WHAT THE NUMBERS MEAN
FINAL PAPER FULL QUESTIONS AND
CORRECT ANSWERS PREMIUM STUDY
SHEET
●● Ridley owns a tractor supply business and called to ask how much
they had taken out of the business and draws this year and how much
retained earnings remain in the business which financial statement
should you refer to for this information?
A. Balance Sheet
B. Income Statement
C. Statement of Equity
D. Statement of Cash Flows
Answer: C. Statement of Equity
This statement is used to show the change to the owners equity in.
business during the given reporting period.
●● Ellis, the owner of a yarn store wants to know where the majority of
the cash originated from this past quarter which financial statement
should you referred to?
,A. Balance Sheet
B. Income Statement
C. Statement of Equity
D. Statement of Cash Flows
Answer: D. Statement of Cash Flows
This statement summarizes the amount of cash and cash equivalents
entering and leaving the business. It measures how well a business
manages its cash position, meaning how well it generates cash to pay its
debt obligations and fund its operating expenses.
●● Everest would like to know how much money was spent on
operating expenses for their outdoor supply gear store this past month
which statement should you look at to find this information?
A. Balance Sheet
B. Income Statement
C. Statement of Equity
D. Statement of Cash Flows
Answer: B. Income Statement
This statement looks at the business expenses in order to determine
overall business profitability.
, ●● Remi bought 10 computers from an online computer wholesaler for
their company which financial statement will reflect the book value of
these assets?
A. Balance Sheet
B. Income Statement
C. Statement of Equity
D. Statement of Cash Flows
Answer: A. Balance Sheet
Reports its assets, liabilities, and owners equity on a particular date.
Equipment is an asset so it will be reflected there.
●● Other than the transaction journal, what is another place you can
view the individual transactions that the owner has made?
Answer: General Ledger
●● Sales Transactions
Answer: Generates revenue for a business by selling goods and services
●● Inventory (or Stock)
Answer: The raw material a business uses in production or finished
goods ready to sell
FINAL PAPER FULL QUESTIONS AND
CORRECT ANSWERS PREMIUM STUDY
SHEET
●● Ridley owns a tractor supply business and called to ask how much
they had taken out of the business and draws this year and how much
retained earnings remain in the business which financial statement
should you refer to for this information?
A. Balance Sheet
B. Income Statement
C. Statement of Equity
D. Statement of Cash Flows
Answer: C. Statement of Equity
This statement is used to show the change to the owners equity in.
business during the given reporting period.
●● Ellis, the owner of a yarn store wants to know where the majority of
the cash originated from this past quarter which financial statement
should you referred to?
,A. Balance Sheet
B. Income Statement
C. Statement of Equity
D. Statement of Cash Flows
Answer: D. Statement of Cash Flows
This statement summarizes the amount of cash and cash equivalents
entering and leaving the business. It measures how well a business
manages its cash position, meaning how well it generates cash to pay its
debt obligations and fund its operating expenses.
●● Everest would like to know how much money was spent on
operating expenses for their outdoor supply gear store this past month
which statement should you look at to find this information?
A. Balance Sheet
B. Income Statement
C. Statement of Equity
D. Statement of Cash Flows
Answer: B. Income Statement
This statement looks at the business expenses in order to determine
overall business profitability.
, ●● Remi bought 10 computers from an online computer wholesaler for
their company which financial statement will reflect the book value of
these assets?
A. Balance Sheet
B. Income Statement
C. Statement of Equity
D. Statement of Cash Flows
Answer: A. Balance Sheet
Reports its assets, liabilities, and owners equity on a particular date.
Equipment is an asset so it will be reflected there.
●● Other than the transaction journal, what is another place you can
view the individual transactions that the owner has made?
Answer: General Ledger
●● Sales Transactions
Answer: Generates revenue for a business by selling goods and services
●● Inventory (or Stock)
Answer: The raw material a business uses in production or finished
goods ready to sell
