Which of the basic financial statements is best used to answer the question, "How profitable is the business?"

• Balance sheet

• Statement of shareholder's equity

• Income statement

• Accounts receivable aging schedule

Who owns the retained earnings of a public firm?

• Inland Revenue Board Of Malaysia

• Common stockholders

• Bondholders

• Preferred stockholders

Which of the basic financial statements is best used to answer the questions "What does the company own and how is it financed?"

• Balance sheet

• Statement of shareholder's equity

• Income statement

• Cash flow statement

Which of the basic financial statements is best used to answer the questions "Where did the company's money come from and how was it spent over the preceding year?"

• Balance sheet

• Statement of shareholder's equity

• Income statement

• Cash flow statement

Which of the basic financial statements is best used to answer questions about changes in owner's equity that are not explained by the income statement?

• Balance sheet

• Statement of shareholder's equity

• Income statement

• Cash flow statement

On the income statement, sales revenue, minus cost of goods sold and operating expenses, equals which of the following?

• Net profit

• Retained earnings

• Net income available to preferred shareholders

• Earning Before Interest and Tax

Which of the following streams of income is not affected by how a firm is financed (whether with debt or equity)?

• Net profit after tax but before dividends

• Net working capital

• Operating income

• Income before tax

Which of the following is not included in computing EBT (earnings before taxes)?

• Marketing expenses

• Depreciation expense

• Cost of goods sold

• Dividends

Your firm has the following income statement items:

Sales of RM50,250

Cost of goods sold of RM35,025

Operating expenses of RM10,115

Interest expense of RM750; and

Income tax of RM1,744

What is the amount of the firm's EBIT?

• RM15,552

• RM58,000

• RM5,110

• RM4,630

Your firm has the following income statement items:

Sales of RM50,250

Cost of goods sold of RM35,025

Operating expenses of RM8,750

Interest expense of RM750; and

Income tax of RM1,744

What is the amount of the firm's net income?

• RM26,616

• RM4,731

• RM2,616

• RM7,775