FBLA - Accounting II Quiz

Which of the following is NOT a financial statement?

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Budget Statement

What is the primary purpose of an income statement?

• To show cash flows

• To report profitability

• To list assets and liabilities

• To assess equity

What does a balance sheet report?

• Revenue and expenses

• Financial position at a specific time

• Changes in equity

• Cash flows over a period

Which financial statement summarizes retained earnings?

• Income Statement

• Cash Flow Statement

• Statement of Owner’s Equity

• Trial Balance

The relationship between the income statement and the balance sheet is primarily through:

• Assets

• Liabilities

• Equity

• Cash flows

Revenue increases which financial statement component?

• Assets

• Liabilities

• Equity

• Expenses

Which accounting method uses accounts to record changes?

• Manual

• Automated

• Hybrid

• None of the above

A trial balance is used to:

• Prepare taxes

• Ensure debits equal credits

• Create a cash flow statement

• Analyze revenue

What is the effect of declaring dividends on financial statements?

• Increases assets

• Decreases equity

• Increases liabilities

• No effect

In a worksheet, the adjusted trial balance is prepared after:

• Closing entries

• Adjusting entries

• Journalizing

• Posting