Six-Column Worksheets/Analyzing Financial Statements

A six-column worksheet is prepared at the end of the fiscal period.

• True

• False

When preparing a 6-column worksheet and the balancing figure is placed on the credit side of the Income Statement column, the business has experienced a net income.

• true

• false

Which of of the following would be an INCORRECT extension on the Worksheet?

• HST Payable on the credit side of the Balance Sheet columns

• Sales on the credit side of the Income Statement columns

• Automobile on the credit side of the Balance Sheet columns

• Repairs Expense on the debit side of the Income Statement columns

The presentation of financial data over a number of fiscal periods for analysis is referred to as a(n)

• trend analysis

• common size analysis

• comparative analysis

• all of the above are possible

Office Equipment is classified as a(n)

• current asset

• fixed asset

• current liability

• revenue

The current assets total for a business is $6575. The current liabilities total is $8980. This is not desirable situation because:

(a)  

In a Statement of Owner's Equity, if the Beginning Capital is $47,500, Net Income is $11,800 and the Ending Capital is $43,400, what is the Drawings figure?

• $7,700

• $59,300

• $4,100

• $15,900

On a common-size income statement, each dollar amount is expressed as a percentage of:

• net income

• sales

• total expenses

• none of the above

When completing your Comparative Income Statement, your Wages Expense in Year 1 is $55,000 and in Year 2 it is $53,000. What is the percentage increase or decrease from Year 1 to Year 2?

• decrease of 3.64%

• increase of 3.64%

• increase of 3.77%

• increase of 10.03%

The working capital of a business is the difference between:

• total assets and total liabilities

• total quick assets and total current liabilities.

• total current assets and total current liabilities.

• None of the above.