Financial Statements

Financial ratio percentages on an income statement compare Revenue (Sales) to total expenses and ?

• net expenses

• total income

• net income

• revenue

Ratio percentages are calculated by dividing the amount being analyzed by the total amount of

• total expenses

• sales

• net income

• total income

To use financial ratio percentages, an owner needs to know what's normal for their business (industry).

• True

• False

The difference between total revenue and total expenses is called

• owner drawing

• total assets

• net income/loss

• owner capital

An income statement reports financial information over a specific period of time.

• True

• False

Total Sales = $168,900 and Total Expenses = $186,900. What is the Income Statement result?

• Net Income - $27,000

• Net Loss - $27,000

• Net Income - $18,000

• Net Loss - $18,000

If total expenses exceed _____________, a net loss is reported on an income statement.

• net expenses

• profit

• total revenue

• net income

A balance sheet can be prepared over a specific period of time.

• True

• False

If total assets are$15,000.00 and total liabilities are $10,000.00, total owner's equity is

• 25,000

• 7,500

• 2,500

• 5,000

To calculate the ending balance of owner's equity, the owner's drawing account is

• added

• subtracted

• not used in this calculation

• multiplied by two