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40 questions
Which account is classified as an Income?
Auto Loan
college Fund
Bank Account
Allowance
Which account is classified as an income?
Cash
cell phone bill
credit card
babysitting payment
Which account is classified as an Expense?
Auto Loan
college Fund
Bank Account
Cell phone bill
Which account is classified as an Expense?
Concert Tickets
college Fund
Bank Account
Cash
Which account is classified as an Asset?
Concert Tickets
Babysitting payment
Allowance
Cash
Which account is classified as an Asset?
Concert Tickets
Bank Account
Allowance
Bus Pass
Which account is classified as an Liability?
Concert Tickets
Bank Account
Credit Card
Bus Pass
Asset, liability and equity accounts are extended to
balance sheet section
income statement section
retained earnings
trial balance
Revenue and expense accounts are extended to
retained earning statement
balance sheet section
income statement
accounts payable section
How does net loss affect owner's equity?
increases
decreases
no change
indirectly
Temporary accounts are
revenue and expense
assets
capital
cash in bank
All of the following statements regarding the purpose of the Statement of Financial Position are correct except for?
Shows assets, liabilities and owner's equity
It is prepared at a point in time
It can assist users, such as bank managers, with decisions
Shows revenue, expenses and profit
The financial statement that reports the assets, liabilities, and shareholders equity at a specific date is the:
Balance sheet
Income Statement
Trial Balance
General Ledger
Cash at bank is an example of a
Current asset
Non-current asset
Equity
A balance sheet shows:
how much gross profit it has
how much net profit it has
how much a business owns and owes
Identify the three sections of a Balance Sheet
Revenue
Assets
Equity
Expenses
Liabilities
The Income Statement has the following sections
Assets
Expenses
Liabilities
Revenue
Equity
What is the purpose of the Balance Sheet?
inform stakeholders the assets and liabilities of business
provides information on how resources are obtained and used and the claim by the owner on the net assets of the business at a point in time.
provides information on how resources are obtained and used in the business at a point in time.
inform stakeholders the owner's equity of business
Cash in Bank will appear on which of the Financial Statements?
Income Statement
Balance Sheet
Painting Fees will show on which Financial Statement?
Income Statement
Balance Sheet
John Smith, Capital will show on which Financial Statement
Income Statement
Balance Sheet
Advertising Expense will show on which Financial Statement?
Income Statement
Balance Sheet
The amount of cash moving into and out of a business
Cash Flow
Net Worth
Money received from a business investor would be an example of
cash inflow
cash outflow
selling an asset would be an example of
cash inflow
cash outflow
Ideally, the net cash flow should be
positive
negative
shows the movement of cash during a specific time frame that has already occured
cash flow statement
cash flow projection
A cash flow statement shows an overview of money flowing in and out of a company
True
False
Receiving cash from selling a share of your company
Cash Inflow
Cash Outflow
Paying interest on a bank loan
Cash Inflow
Cash Outflow
What are results from salaries, rental, dividend etc,?
income
assets
expense
liabilities
Money spent on different items.
solvent
appreciation
expenses
insolvent
The financial statements of a business enterprise include:
_________________
Balance sheet
Statement of Profit and loss
Cash flow statement
All the above
Financial analysis is used only by the creditors.
True
False
State whether each of the following is True or False :
Statement of profit and loss account shows the operating performance of an enterprise for a period of time.
False
True
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