Pretest - Post test

Which financial statement will allow you to determine the gross margin for a retailer or manufacturer?

• a. Statement of Financial position

• b. Income statement

• c. Statement of cash flows

• d. Statement of stockholders’ equity

Which financial statement's structure is closest to that of the basic accounting equation?

• a. Statement of Financial position

• b. Income statement

• c. Statement of cash flows

• d. Statement of stockholders’ equity

The amount spent for capital expenditures will be reported in which section of the statement of cash flows?

• a. Cash provided/used in financing activities

• b. Cash provided/used in investing activities

• c. Cash provided/used in operating activities

• d. Supplemental information

Does the heading of a balance sheet indicate a period of time or a point in time?

• a. Period of time

• b. Point in time

Which accounting method will result in financial statements that report a more complete picture of a corporation’s financial position and a better measure of profitability during a recent accounting year?

• a. Accrual method

• b. Cash method

The changes that occurred during a recent year in the accounts Retained Earnings and Treasury Stock will be presented in which financial statement?

• a. Statement of Financial position

• b. Income statement

• c. Statement of cash flows

• d. Statement of stockholders’ equity

_____________ financial reports of a business that summarize the financial condition and operations of the business.

• a. Statement of Financial position

• b. Income statement

• c. Statement of cash flows

• d. Statement of stockholders’ equity

_______________ columnar form used to summarize the general ledger information needed to prepare financial statements.

• a. worksheet

• b. financial statement

• c. general ledger

• d. balance sheet

_______________________ length of time for which a business summarizes and reports financial information

• a. fiscal period

• b. worksheet period

• c. financial statement

Cash flow statements help you determine the net worth of a company.

• a. True

• b. False