DAY 4 QUIZ

Which financial statement shows the financial position of a company at a specific point in time?

• Income Statement

• Balance Sheet

• Statement of Cash Flows

• Statement of Retained Earnings

What is the purpose of a worksheet in accounting?

• To record journal entries

• To assist in preparing financial statements

• To track cash receipts

• To pay accounts payable

Which element of the financial statement represents the residual interest in the assets of the entity after deducting liabilities?

• Assets

• Liabilities

• Equity

• Revenues

On a worksheet, the trial balance total for debit and credit columns must:

• Be different

• Be equal

• Include only assets and liabilities

• Include only revenues and expenses

Which of the following accounts would typically appear on the income statement?

• Accounts Receivable

• Service Revenue

• Accounts Payable

• Common Stock

Which of the statements below indicates that a company earned a net income for the period?

• The sum of the debits exceeds the sum of the credits in the Income Statement columns on the worksheet.

• The sum of the debits exceeds the sum of the credits in the Statement of Financial Position columns on the worksheet.

• The sum of the credits exceeds the sum of the debits in the Income Statement columns on the worksheet.

• Cash inflows exceeded cash outflows.

A worksheet uses the adjusted trial balance columns to:

• Prepare the financial statements

• Record transactions in the ledger

• Show cash flow details

• Track stockholders' equity changes

If on a worksheet, total debits in the income statement columns exceed total credits, what is the effect on net income?

• Net income is positive

• Net income is negative (net loss)

• Net income is zero

• Net income cannot be determined

What type of account is "Accumulated Depreciation" and where does it appear?

• Asset, on income statement

• Contra-asset, on balance sheet

• Expense, on income statement

• Liability, on balance sheet

Given the following: Beginning Inventory ₱20,000, Purchases ₱50,000, and Ending Inventory ₱15,000, what is the Cost of Goods Sold?

• ₱20,000

• ₱50,000

• ₱55,000

• ₱65,000