Financial Accounting 1 - Quiz 1

Which financial statement displays the revenues and expenses of a company for a period of time?

• INCOME STATEMENT

• BALANCE SHEET

• CASH FLOW STATEMENT

• STATEMENT OF STOCKHOLDER’S EQU

What is the main purpose of financial accounting?

• ORGANIZE FINANCIAL INFORMATION

• PROVIDE USEFUL, FINANCIAL INFORMATION TO OUTSIDERS

• KEEP TRACK OF COMPANY EXPENSES

• MINIMIZE COMPANY TAXES

Which of these is not included as a separate item in the basic accounting equation?

• ASSETS

• REVENUES

• LIABILITIES

• STOCKHOLDER’S EQUITY

The account format that displays debits, credits, balances, and headings.

• GENERAL JOURNAL

• GENERAL LEDGER

• T-ACCOUNT

• LEDGER ACCOUNT

Which account increases equity?

• EXPENSES

• WITHDRAWALS

• TREASURY STOCK

• REVENUES

Which principle/guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?

• Historical Principle
• Business Entity
• Accrual Principle
• Adequate disclosure Principle

All properties and services acquired by the business must be recorded at their original acquisition cost. This principle pertains to..

• Historical Principle
• Business Entity
• Accrual Principle
• Objectivity principle

Providing financial accounting information about economic activities for specified time/accounting periods.. This principle pertains to..

• Accrual Principle
• Business Entity
• Periodicity Principle
• Objectivity principle

It is a measurement of financial position of the company.

• Income Statement
• Balance Sheet
• Cash Flow Statement
• Adequate disclosure Principle

It is a measurement of performance (shows the profit or loss) of the company.

• Income Statement
• Balance Sheet
• Cash Flow Statement
• Statement of Owner's Equity