WorksheetsAccounting Chapter 9 Exam Review
Total questions: 24
Worksheet time: 12mins
Name
Class
Date
1.
The source of information for completing the income statement is the
a)
balance sheet section of the worksheet
b)
income statement section of the worksheet
c)
balance sheet
d)
statement of changes in owner's equity
2.
The financial statement that reports the net income or net loss for the fiscal period it covers is the
a)
balance sheet
b)
statement of cash flows
c)
statement of changes in owner's equity
d)
income statement
3.
The classifications of balance sheet accounts are shown one under the other in
a)
account form
b)
alphabetical form
c)
report form
d)
none of these
4.
Reports prepared to summarize the changes resulting from business transactions that have occurred during a fiscal period are called
a)
financial statements
b)
accounting reports
c)
report form
d)
income statements
5.
A financial statement that is prepared to summarize the effects on the capital account of the various business transactions that occurred during the fiscal period is called a(n)
a)
balance sheet
b)
statement of changes in owner's equity
c)
income statement
d)
statement of cash flows
6.
This occurs when total revenue is greater than total expenses
a)
net loss
b)
net income
7.
The amount by which current assets exceeds current liabilities is known as
a)
a profitability ratio
b)
working capital
c)
return on sales
d)
none of these
8.
A financial statement that is a report of the final balances in all asset, liability, and owner's equity accounts at the end of the fiscal period is the
a)
income statement
b)
statement of cash flows
c)
statement of changes in owner's equity
d)
balance sheet
9.
The relationship between current assets and current liabilities is the
a)
quick ratio
b)
current ratio
c)
return on sales
d)
none of these
10.
This type of ratio is used to examine the portion of each sales dollar that represents profit.
a)
return on sales
b)
quick ratio
c)
current ratio
d)
profitability ratios
11.
These types of ratios are a measure of a business's ability to pay its current debts as they become due and to provide for unexpected needs for cash.
a)
profitability ratios
b)
return on sales
c)
liquidity ratios
d)
quick ratio
12.
The debts of the business that must be paid within the next accounting period.
a)
current assets
b)
owner's capital
c)
long term debt
d)
current liabilities
13.
Assets used up or converted to cash during the normal operating cycle of the business are known as
a)
long term assets
b)
current assets
c)
supplies
d)
accounts receivable
14.
These types of ratios are used to evaluate the earnings performance of the business during the accounting period.
a)
liquidity ratios
b)
current ratio
c)
return on sales
d)
profitability ratios
15.
The statement of changes in owner's equity is prepared before the balance sheet
a)
true
b)
false
16.
The balance sheet is prepared from the information in the balance sheet section of the worksheet and from the statement of changes in owner's equity.
a)
true
b)
false
17.
A net loss and withdrawals both cause an increase in the capital account.
a)
true
b)
false
18.
The balance sheet represents the basic accounting equation.
a)
true
b)
false
19.
The wording of the date line in the heading on the income statement is important.
a)
true
b)
false
20.
The balance sheet contains only the permanent general ledger accounts.
a)
true
b)
false
21.
The statement of changes in owner's equity is completed as a supporting document for the income statement
a)
true
b)
false
22.
The sections listed on the income statement are the heading, the revenue for the period, the capital for the period, and the net income or loss for the period.
a)
true
b)
false
23.
The primary financial statements prepared for a sole proprietorship are the income statement and the statement of changes in owner's equity.
a)
true
b)
false
24.
The statement of changes in owner's equity shows the changes in the cash in bank account.
a)
true
b)
false
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