Financial Statements Activity

1.              Which financial statement reports the revenues and expenses for a period of time such as a year or a month?

• Balance sheet

• Income Statement

• Statement of Cash Flows

• Statement of Retained Earnings

2.              Which financial statement reports the assets, liabilities, and stockholders’ (owner’s) equity at a specific date?

• Income Statement

• Balance Sheet

• Statement of Cash Flows

• Statement of Retained Earnings

3.              Under the accrual basis of accounting, revenues are reported in the accounting period when which of the following occurs?

 

• Cash is received

• Services or goods are delivered

Unearned Revenues is what type of account?

• Asset

• Liability

• Income

• Owner's Equity

In an accounting equation, liabilities and owner's equity is always equal to what?

• Retained Earnings

• Liability

• Assets

• Expenses

8.              Represent the total monies owed the firm by its customers on credit sales

Are short-term liabilities which should be paid within a year or less

Are very liquid short-term investments such as treasury bills or certificates of deposit, held by the firm. It is viewed as “near cash”

Is the loss of value of assets due to wear and tear, age, or obsolescence

Are noncurrent resources that do not have physical substance

• tangible assets

• royalties

• intangible assets

• fixed assets