Acct. Balance Sheet /Income Statement Review

Net Income is calculated by...

• Revenue - Expense

• Revenue + Expense

• Revenue - Liabilities

• Revenue + Liabilities

The Income Statement lists a businesses:

• Assets and Expenses
• Owner's Equity and Revenue
• Revenue and Expenses

• Expenses and Net Assets

What is the purpose of an income statement?

• calculate the bank balance

• calculate net assets

• calculate sales

• calculate net profit

When expenses are greater than income?

• expense

• net loss

• net income

• net gain

A _______________ is a resource that is owned by a business.

Select the item which is not a component of a balance sheet.

• Fixed Assets

• Current Assets

• Current Liabilities

• Expenses

Amount which the proprietor has invested in a business is known as ......

• Capital

• Liability

• Asset

• Expenses

Amount which the firm owes to outsiders is known as.....

• Capital

• Expenses

• Liability

• Asset

Amount withdrawn by the owner for personal use......

• Capital

• Asset

• Drawings

• Liability

Expenses which are paid in advance is......

• Prepaid Expenses

• Postpaid Expenses

• Outstanding Expenses

• Accrued Expenses