Income Stmnt, Stmnt of OE, & Bal.Sheets ACNT 2 4.1.1/2

A financial statement summarizing the owner's claims to the assets of the business at the end of fiscal year is the _____.

• statement of owner's equity

• balance sheet

• consolidated financial statement

• income statement

Which section of the income statement lists depreciation, interest, and equipment purchases?

• Revenue

• Expenses

• Heading

• Net income/loss

Which section of the income statement records the primary income sources, such as sales of goods or services, and secondary sources such as rentals and interest?

• Heading

• ChoiceFeedbackA.HeadingB.Net income/loss

• Revenue

• Expenses

The first step in preparing the income statement, known as _____, involves calculating the trial balance for all accounts for the fiscal year.

• .determining net income

• reporting all expenses

• reporting all revenue

• gathering necessary information

The second step in preparing the income statement, known as _____, is to determine the gross profit by subtracting the cost of the goods his company sold from the total sales.

• reporting all revenue

• determining net income

• gathering necessary information

• reporting all expenses

The third step in preparing the income statement involves including information such as salary costs, rent, utilities, and licenses. This step is known as _____.

• reporting all revenue

• reporting all expenses

• determining net income

• gathering necessary information

The last step in preparing the income statement is to _____. This involves subtracting total expenses from total revenues.

• report all expenses

• report all revenue

• determine net income

• gather necessary information

The first step in preparing the statement of owner's equity involves referring to the previous reporting period for information on ______.

• additional contributions

• net income

• the amount the owners decided to pay themselves

• beginning capital

The second step in preparing the statement of owner's equity involves determining if there are any deposits the owners have made toward the capital of the company during the fiscal period, which are as _____.

• additional contributions

• net income

• owner's withdrawals

• amount the owners decided to pay themselves

The third step in preparing the statement of owner's equity involves subtracting the amount of money that has been taken out of the business over the period. This figure is called the _____.

• ending capital

• owner's withdrawals

• additional contributions

• net income