Have an account?
Skip to Content
Build your own quiz
19 questions
Show Answers
See Preview
- 1. Multiple Choice
The income statement consists of Operating Activities, Financing Activities, and Investment activities.
True
False
- 2. Multiple Choice
Which of the following are classified as equity? Choose 2
Mortgages
Capital Stock
Retained earnings
Short-term notes
- 3. Multiple Choice
An amount earned by a corporation and not yet distributed to stockholders.
retained earnings
dividends
purchases allowance
sales return
- 4. Multiple Choice
The value of the stockholders' claims to the assets of a corporation is known as
stockholder's equity
stakeholder's equity
retained earnings
liabilities
- 5. Multiple Choice
The percent of property, plant and equipment to total assets is an example of:
vertical analysis
solvency analysis
profitability analysis
horizontal analysis
- 6. Multiple Choice
The analysis of increases and decreases in individual items in comparative financial statements is called:
vertical analysis
solvency analysis
profitability analysis
horizontal analysis
- 7. Multiple Choice
These are used by investors, market analysts, and creditors to evaluate a company's financial health and earnings.
Statement of Financial Position
Financial Statements
Balance Sheet
Cash flows
- 8. Multiple Choice
each amount on a financial statement is compared with its corresponding amount on the previous statement
horizontal analysis
vertical analysis
- 9. Multiple Choice
each dollar amount on a financial statement is also stated as a percentage of a base amount on the same statement
horizontal analysis
vertical analysis
- 10. Multiple Choice
The ownership of a corporation is represented by shares of stock
True
False
- 11. Multiple Choice
The Retained Earnings account always increases at the end of the fiscal period.
True
False
- 12. Multiple Choice
Sales Discounts is a contra account of Sales
True
False
- 13. Multiple Choice
Capital Stock is the only general ledger account classified as stockholders' equity
True
False
- 14. Multiple Choice
The source of information for preparing the income statement is the general ledger.
True
False
- 15. Multiple Choice
The first "calculation" in the Cost of Merchandise Sold section of the income statement is...
Cost of Delivered Merchandise
Net Purchases
Cost of Merchandise Available
Cost of Merchandise Sold
- 16. Multiple Choice
The second "calculation" in the Cost of Merchandise Sold section of the income statement is...
Cost of Delivered Merchandise
Net Purchases
Cost of Merchandise Available
Cost of Merchandise Sold
- 17. Multiple Choice
On the balance sheet...
Assets = Liabilities + Equity
Assets + Liabilities = Equity
Assets - Liabilities = Equity
Assets = Liabilities - Equity
- 18. Multiple Choice
Where do you find the beginning balance for Retained Earnings?
worksheet
income statement
statement of retained earnings
balance sheet
- 19. Multiple Choice
Where do you find the ending balance for Retained Earnings?
worksheet
income statement
statement of retained earnings
balance sheet
- Answer choicesTagsAnswer choicesTags