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Accounting 120 SI Test 1 practice

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  • 1. Multiple Choice
    1 minute
    1 pt

    Which of the following is not one of the four basic financial statements?

    The balance sheet

    The statement of cash flows

    The audit report

    The income statement

  • 2. Multiple Choice
    2 minutes
    1 pt

    Which of the following statements is FALSE regarding the balance sheet?

    The accounts shown in a balance sheet represent the basic accounting equation for a particular business.

    The retained earnings account shown on a balance sheet must agree with the end retained earnings balance shown on the Statement of Retained Earnings.

    The balance sheet summarizes the net changes in specific account balances over a period of time.

    The balance sheet reports the amount of assets, liabilities, and stockholders equity a company has at a point in time.

  • 3. Multiple Choice
    1 minute
    1 pt

    Which of the following is FALSE regarding retained earnings

    Retained Earnings is increased by Net Income

    Retained Earnings is a component of Stockholders Equity on the balance sheet

    Retained Earnings is an asset on the balance sheet

    Retained earnings represents earnings not yet distributed to stockholders in the form of dividends

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