Review- Financial Statements Quiz

What are the accounting reports that provide financial information of transactions of the business that have been recorded and summarized?

• Financial Statements

• Balance Sheet

• Statement of Owner’s Equity

• Statement of Cash Flows

What is this financial document that summarizes the items affecting the capital account of the business?

• Statement of Owner’s Equity

• Balance Sheet

• Statement of Owner’s Equity

• Profit and Loss Statement

What financial statement gives investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders?

• Balance Sheet

• Statement of Owner’s Equity

• Statement of Cash Flows

• Income Statement

What document contains a summary of the owner’s investments?

• Statement of Owner’s Equity

• Balance Sheet

• Statement of Cash Flows

• Income Statement

Which of the following items would be classified as an investing activity on the statement of cash flows?

• Purchasing property and equipment

• Payment for salaries, cash received from sale of goods

• Proceeds from bank loan

• Payment for taxes

Which among the following items should NOT be included in the operating activities on the statement of cash flows?

• Buying of production equipment

• Payment for salaries

• Received cash from customers

• Payment for supplies

If a cashflow forecast suggests that a firm will run out of cash, which would help the problem?

• Delay paying suppliers

• Pay suppliers immediately

• Repay a bank loan

• Purchase more fixed assets

Read the following statements. Which is not true in preparing financial statements?

• A net loss in the worksheet is entered in the debit column of the Income Statement and credit column of Balance Sheet.

• When the Income Statement credit column total is greater than the Income Statement debit column total on a worksheet, the business has a Net profit.

• The general ledger account titles are listed and posted in the Trial Balance.

• On a worksheet, the balance of the owner’s capital account is extended to the balance sheet credit column.

Which of the following statements is correct?

• If it is a revenue or expense, extend to income statement columns; otherwise, extend the accounts to balance sheet columns.

• Cash account up to drawing account are extended to the income statement column

• A net profit in the worksheet is entered in the credit column of the Income statement and debit column of the Balance Sheet

• A credit in the trial balance and a debit in the adjustment column mean that we have to add the debit and credit and place the total in the column with a greater value.

Read the following statements. Which of the following statements is True in preparing financial statements?

• When the Income Statement credit column total is greater than the Income Statement debit column total on a worksheet, the business has a net profit

• A net loss in the worksheet is entered in the credit column of the Income Statement and credit column of Balance Sheet.

• The general ledger account titles are listed and posted in the journal

• On a worksheet, the balance of the owner’s capital account is extended to the balance sheet debit column