AC Exam 1 practice questions fully solved & verified for accuracy

The primary goal of most companies is to make a profit True or False: The accounting equation is Assets = Liabilities + Stockholders' Equity. True Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More Place the single-step income statement items in the proper order from top to bottom. 1. Revenue 2. Expenses 3. Net Income Individual expenses are accumulated in separate accounts Match the financial statement that reports each of the following. Supplies to Balance sheet (supplies on the balance sheet represents the amount of supplies on hand.) Supplies Expense to Income Statement (supplies expense on the income statement represents the amount of supplies used.) Cash paid for supplies to Statement of cash flows (cash paid for supplies is the amount paid on the statement of cash flows.) Which of the following statements are true about the balance sheet. 1. It is sometimes called the statement of financial position. 2. It reports the economic resources and claims on those resources. 3. It reports the assets, liabilities and stockholders' equity at a point in time. Which of the following cause Retained Earnings to increase? 1. Net income 2. Selling goods or services at a price higher than the costs incurred to operate the business. 3. Revenues greater than expenses. Profits that have accumulated in the company over time are Retained Earnings Mauricio invested $30,000 in Pizza Aroma in exchange for its stock. Pizza Aroma now has a balance in its ______ account. Common Stock prepare a statement of retained earnings for the month of September from top to bottom. 1. Retained Earnings, September 1. 2. Net Income 3. Dividends 4. Retained Earnings, September 30. Match the purpose with the appropriate financial statement. 1. Income Statement - Reports the financial performance of the business during the current accounting period. 2. Statement of retained earnings - Reports the accumulation of profits kept by the business during the current accounting period with that of prior periods. 3. Balance Sheet - Reports the financial position of the business at a point in time. 4. Statement of cash flows - Reports the operating, investing and financial activities effect on cash. The balance sheet reports ______. assets, liabilities and stockholders' equity at a specific point in time. Net Income equals total revenues minus total expenses. Place these items in the order in which they appear on the statement of cash flows. 1. Cash flows provided by (used in) Operating Activities. 2. Cash Flows Provided (used in) Investing Activities. 3. Cash Flows Provided by (used in) Financing Activities. Place the following in order (top down) of how they would appear in the heading of Dell Llama's annual income statement for the fiscal year ended March 31, 2017. 1. Deli Llama, Inc. 2. Income Statement 3. For the year ended March 31, 2017 The statement retained earnings reports the Profits that have accumulated in the company over time. The balance sheet balances when assets equal liabilities plus stockholders equity When a company is owed for sales made to customers on credit, the asset called Accounts Receivable will be reported on the balance sheet. Which of the following represents the written promise to repay a bank? Notes Payable