Income Statement Summative Test 3

1. These are inflows of cash and promises of cash (accounts receivable) for goods or services sold to customers.

 

• assets  

• expenses

• capital  

• revenues

2. This is one of the three important financial statements used for reporting a company's financial performance over a specific accounting period.

•   assets  

• expenses

   

•   balance sheet  

• income statement

3. This something that comes in as an addition or increase, especially by chance.

 

• balance sheet  

• income

   

• expense  

• income statement

4. These are goods or services used or consumed in operating your business.

 

• assets  

• operating expense

   

• capital 

• none of these

5. These are expenses that directly relate to the selling of your product or service.

 

• administrative expenses  

• marketing expenses

   

•   Electricity Expenses  

• none of these

6. These are expenses that do not directly relate to the selling of your product or service; however, they are necessary in operating the business.

 

• administrative Expenses 

• marketing expenses

   

• electricity expenses  

• none of these

7. These are examples of administrative expenses.

 

• bank charges expense, cash

   

• building, shipping expense

   

• office salaries expense, telephone expenses

   

• sales income, utilities expense

These are examples of operating expenses.

 

• advertising expense, sales promotion expense

   

• brochure and pamphlet development expense, land

•   c. capital, loan

   

• sales force salary expenses, bank notes

9. These are the two important sections of income statement.

 

• asset and expense  

• income and asset

   

• capital and expense  

• income and expense

10. These are accounts not involved in income statement.

 

• cash and account payables

   

• professional income and salary expenses

• interest income and telephone expenses

   

• service income and depreciation expense